YOUR PROTECTION
What if?
Owning your property free and clear involves more than
having a deed in hand. A deed does not cancel certain
prior “rights” and “claims” other
people may have to your
property—rights whose existence you never suspected;
claims that may go back in time months or decades to the
earliest owners of your newly acquired property.
Protecting Your Rights
“What protection,” you may ask “do I have
against such
claims? How can I be sure my property is really mine?” The
answer to both of those questions is real estate ownership
insurance, commonly known as title insurance.
Title Insurance
Title insurance is an insured statement of the condition
of your “title” or ownership rights to a certain
piece of
property. An owner’s title insurance policy describes
your property in detail and states what limitations, if any,
there are to your ownership. (For example, you may take
ownership subject to existing liens or encumbrances. Or
you may not own mineral rights. Or easements may have
been granted to utility companies or adjacent property
owners.)
Most importantly, an owner’s title insurance policy
guarantees that the property you are purchasing is free
of undisclosed liens, confusion in the rights of ownership,
and other clouds on the title. In short, it guarantees that
you own the property for which you bargained. |
OUR
OWNER’S
POLICY
Before an owner’s policy is issued, the title company
(or one
of its agents) conducts a search of public records, maps, and
documents. The records may trace back to colonial estates,
pioneer homesteads, or even Spanish land grants. Only
after collecting, examining, and interpreting appropriate
records is a policy issued insuring the condition of title.
Besides describing your property and spelling out any
recorded limitations on your ownership, a title insurance
policy sets forth in clear terms what First American Title
Insurance Company will do in the event that a flaw in the title
is discovered or your rights of ownership are challenged.
In simple terms, First American agrees to:
1. Defend your title in court, at our expense,
as to covered matters.
2. Bear the cost of settling the claim if it proves valid.
3. Correct or clear the title when possible.
4. Promptly pay you for your loss in the event of an
unsuccessful defense of your title.
Two Policies in One
This is, in effect, two policies in one. One provides coverage
for legal expense to defend title. The other provides for
reimbursement in the event of a loss. |
One
Low Premium
A low, one-time premium is all you pay to obtain the protection
and peace of mind that comes with a First American title
insurance policy. As long as ownership remains in your name
or
that of your heirs, there is no additional cost. The policy
is issued
in an amount equal to the purchase price you pay.
100 Years of Protection, Plus
The protection you get from an owner’s
title insurance policy is
only as good as the company that underwrites it. It is in your
best
interest to select a title insurer that meets the highest standards
of financial stability, professional integrity, and responsible
management.
Peace of Mind
An owner’s title insurance policy
provides you with peace of mind.
It takes the risk out of acquiring property whose legal history
is
unknown to you. While there should be no risks in transferring
property, they do exist. Through the years, your new property
may have changed hands many times through sale, inheritance,
foreclosure, or bankruptcy. Each transfer was an opportunity
for
an error in title to arise. If an error occurred, and has never
come
to light, it puts your title in jeopardy. You could lose your
property
and the money you paid for it. And, even if you successfully
defend your rights of ownership, the cost in time and legal
fees
could be prohibitive.
Among the many risks against which title insurance
protects you are:
• Confusion from similarity of names
• Forged documents
• Signatures of minors or mentally incompetent persons
• Mistakes in recording legal documents
• Undisclosed or missing heirs
• Fraud
• Invalid divorces
• Misrepresentation of marital status
• Unpaid taxes
• Clerical errors in public records
• Wills not probated |
First American Title Insurance Company
has been protecting homeowners
for more than 100 years.
Our financial condition is rock-solid.
Our reputation is secure.
Your protection is our policy.
Insist on an owner’s title insurance
policy from First American
Title Insurance Company. |
