Over the years, I’ve had to help explain Title Insurance to my buyer clients.
After their offer is accepted, and we’re going over the terms of the Purchase & Sales Contract, we get to Section 7 of the contract. Here’s what it looks like in Massachusetts:
Confused yet? I always advise a buyer (and advise the reader now) that they are entitled to have an Attorney review the entire contract. I am not an attorney, (nor do I play one on T.V.) so my opinions, explanations, or this blog should not be taken as legal advice.
My personal thoughts have always been, that if you finance or get a mortgage when purchasing your property, your Lender will require a Lender’s “Title Policy” to protect their interests. Isn’t that a hint that you should probably look into it a little more, and consider an Owner’s Title Policy of your own?
There is another way to potentially "lose" your home, other than to foreclosure.
When a buyer purchases a home, they can’t even fathom that there might possibly be another way to lose your home, other than to foreclosure.
Video: Title Insurance Explained Visually
When you buy a house or property, it is generally recorded at the Registry Of Deeds. There are other things such as the mortgage, liens, etc that are also filed. When purchasing title insurance, they will research past transactions and these documents are researched and examined to find out whether or not there are any issues that could impact your homeownership. Even though they do a great job in researching, there’s always a risk that something might slip through the cracks. Here are a few examples: forgeries, filing errors, undisclosed heirs, etc.
Examples of Problems
- A deed “challenged” as being under fraud, undue influence or “duress”
- Deed following nonjudicial foreclosure, where the required procedure was not followed.
- Deed signed “by mistake” (granot didn’t know what was signed)
- Deed signed under falsified power of attorney
- Undisclosed divorce of one who conveys as sole heir of a deceased former spouse
- Deed affecting property of deceased person, not joining all heirs
and there’s many more….
With real estate being one of the largest purchases a person will make in their lifetime, why wouldn’t you consider obtaining insurance to cover yourself?
Video: It Happened to Them
Still a nightmare, but sounds like luckily, they had title insurance.
First American Title has created a pamphlet with some great examples.
They list about 70 something ways that your title insurance policy can protect you against potential defects.
Here is the Link to download your FREE copy
Again, we are not attorneys, so the above information is given for informational purposes only and should not be taken as legal advice. Buyer is encouraged to research further and make their own informed decisions on whether or not they should consider purchasing title insurance. We, as REALTORS®, do not benefit one way or the other, we just want our customers and clients to be well informed, and be able to make educated decisions with the biggest investment of their lives.
We hope you found this helpful! Let us Know… and we’ll keep writing more!
Silva Realty Group Inc.
52 Brigham St. Suite #6
New Bedford, MA 02740