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Understanding Title Insurance can be difficult, especially for your buyers/borrowers and sellers. Use this as your guide to explain the importance of the services we provide for your clients. They can rest assured knowing NorthStar Title is guiding their real estate transactions. |
| What Is Title Insurance? | |
Owner's Policy of Title Insurance
A policy that insures against loss or damage by virtue of defects, liens, encumbrances, and others; additionally, there is protection against hidden defects that cannot be discovered by a title examination, such as forgery, fraud, missing heirs, outstanding dower interest, and so on. An owner's policy further provides for payment of costs, attorney fees and expenses incurred in the defense of the title.
Mortgagee's Policy of Title Insurance (Loan Policy)
A policy of insurance that provides coverage to a lender. The policy insures against loss or damage by virtue of defects, liens, encumbrances, and others; additionally, there is protection against hidden defects that cannot be discovered by a title examination. It guarantees that the lender's mortgage is the first and best lien on the real estate. Coverage decreases with each mortgage payment made by owner.
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| Why You Need Title Insurance | |
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The following issues are examples of why you need a Title Insurance Policy. Even the best title search cannot protect your home and equity from matters that do not appear in the public records. Having a Title Insurance Policy can protect you from:
Documents executed under false, revoked or expired powers of attorney.
- False impersonation of the true land owner.
- Undisclosed heirs.
- Improperly recorded legal documents.
- Prescriptive rights of another not appearing of record and not disclosed by survey.
- Failure to include necessary parties to certain judicial proceedings.
- Defective acknowledgements due to improper or expired notarization.
- Corporate franchise taxes as liens on corporate real estate assets.
- Gaps in the chain of title.
- Mistakes and omissions resulting in improper abstracting.
- Forged deeds, mortgages, wills, releases of mortgages and other instruments.
- Deeds by minors.
- Deeds which appear absolute, but which are held to be equitable mortgages.
- Conveyances by an heir, devisee or survivor of a joint estate who attempts to attain title by ill-gotten means.
- Inadequate legal descriptions.
- Conveyances by undisclosed divorced spouses.
- Duress in execution of wills, deeds and instruments conveying or establishing title.
- Issues involving delivery of conveyance instruments.
- Deeds and wills by persons lacking legal capacity.
- State inheritance and gift tax liens.
- Administration of estates and probate of wills of missing persons who are presumed deceased.
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