Owners title insurance can be selected when buying or refinancing real estate. It only needs to be bought once by a homeowner and will guard against title issues for the duration of ownership. Understanding what title issues are can help buyers decide whether to purchase title insurance. What are title defects in Southern NH can be found below.
What Are Title Defects
Title defects are not typical but they can have a major affect when they do occur. Defects are conditions that question the true owner of a piece of real estate. Even though a title exam is completed before most homes are purchased, some problems are not easily detectable and can be missed for many years and through multiple changes in ownership. Any identified issues must normally be resolved before the completion of a sale, but in cases where they are not uncovered, title insurance can protect the homeowner of the home.
Examples of Title Defects
Title defects can appear in different shapes and sizes. The following are just a few examples (although this can differ by insurance company).
- Missing Parties
- Unknown Liens
- Missing Releases
- Failure to Follow Correct Recording Procedures
- Unrecorded Encumbrances
- Missing Heirs
- Mental Incompetence of a Party
- Mistaken Identity
- Problematic Deeds
Why Purchase Owners Title Insurance
If you have an owners title insurance policy, the insurance company may either resolve a problem or cover your losses resulting from it. It could even help defend against a law suit threatening your ownership rights. Policies are purchased based on a specific value, so coverage limits do apply. Also, specific items may be excluded from your policy. Ask your closing attorney for a complete list and for more information on what are title defects in Southern NH. Overall, title insurance is the best protection of your ownership rights to a property. Although the cost can be high, it is paid only one-time and remains effective for as long as you maintain ownership. It is certainly worth the cost given that real estate can be the biggest investment that you make.