What Does Your Premium Really Pay For?
An important part of title insurance is its emphasis on risk elimination before insuring. Title insuring begins with a search of public land records affecting the real estate concerned. The title agent on behalf of its underwriter to determine whether the property is insurable conducts an examination. The examination of evidence from a search is intended to fully report all “material objections” to the title. Frequently, documents that can present concerns:
- Deeds, wills and trusts that contain improper wording or incorrect names
- Outstanding mortgages and judgments, or lien against the property because the seller has not paid their taxes
- Easements that allow construction of a road or utility line
- Pending legal action against the property that could affect a purchaser
- Incorrect Notary Acknowledgments