Fee Insurance

Product

Description

Fee Insurance

Fee title insurance is also known as Owner’s title insurance. Owner's title insurance is usually issued in the amount of the real estate purchase at the time of closing. It is purchased for a one-time fee at closing and lasts as long as you or your heirs have an interest in the property. This policy is used to insure an owner against various defects, liens and encumbrances on the title. Only Owner's title insurance fully protects the buyer should a problem arise with the title that was not discovered during the title search. Owner's title insurance also pays for any legal fees involved in defending a claim to your title.

In order to issue title insurance, the title company must search public land records for matters affecting that title. Many search the "chain" of title back 50 years. Twenty-five percent of title searches find a title problem that is fixed before the insurance is issued. Some examples of items that can cause a problem are: deeds, wills and trust that contain improper information; outstanding judgments or tax liens against the property; and easements. Title companies fix the problems then issue the title insurance.

Occasionally, in spite of an exhaustive title search, hidden hazards can emerge after closing. Things such as mistakes in the public record, previously undisclosed heirs claming to own the property; or forged deeds could cloud the title. Owner's title insurance offers financial protection against these by negotiating with third parties, and paying claims and the legal fees involved in defending the title.