is Title Insurance
PRESERVING THE PAST, INSURING THE FUTURE.
Most kinds of insurance are self-explanatory. Fire insurance
protects against losses from fire. Collision insurance guards against
the cost of a crunched car. Theft insurance well, you get the point.
But title insurance? What does it mean to insure your title to real estate?
And what are the risks that make title insurance important? Chicago Title
Insurance Company has been asked these questions before. Heres how
we answer them.
A WORD ABOUT REAL ESTATE.
Real estate has always been considered mans most valuable
possession. It is so basic a form of wealth that many special laws have
been enacted to protect ownership of land and the buildings which stand
on the land. You should realize whenever you buy property that the owner
who is selling it to you has extremely strong rights as do family and
heirs. Also, there may be others in addition to the owner
who have rights in the property you are going to buy. These
may be governmental bodies, or contractors, or individuals who have perfectly
proper unpaid claims against the property. Anyone who has such a claim
is, in a sense, a part-owner. The property may be sold to you
without the party who has a claim knowing about the sale. And you may
know nothing about such a claim at the time you buy. It doesnt matter.
Such claims may remain attached to the real estate you have purchased.
WILL YOU GET A CLEAR TITLE?
It is of the greatest importance that you do. But this means
that you must be informed about any of these claims against your land
so that you can make certain they are cleared up before you buy. And it
means that you must be protected against any undiscovered claims that
may arise in the future to threaten your title and the possession of your
property. Title insurance provides this two-fold protection.
HOW DO YOU LEARN WHAT CLAIMS EXIST?
By a search of the public records. This is the first step we
take in order to insure your title. We keep track of recorded documents
which might affect the title to every parcel of land.
Some of the things a title search uncovers are any unpaid taxes or mortgages,
judgments against previous owners, easements, court actions and many other
recorded documents which can affect title to real estate. We find and
report such defects in the title to the real estate you wish to buy, so
that these matters can be corrected and cleared up. It is the first benefit
you receive when title insurance is ordered.
WHAT IF THERE IS A DEFECT IN THE TITLE SEARCH?
This can happen. We call them hidden risks the
undiscovered claims which may arise long after you have bought your home.
Protection against loss from claims on real which cannot be discovered
by examination of the public records is the second part of twofold benefit
which title insurance provides.
The title to the home which you have paid for and to which you
have received a deed - could be seriously threatened or completely lost
by such circumstances as a forgery, confusion due to similar names, error
in the records to cite just a few hazards.
HOW DOES A TITLE INSURACE POLICY PROTECT AGAINST
ALL THESE DANGERS?
If a claim is made against your title as insured, Chicago Title
Insurance Company protects you by: 1) Defending your title, in court in
necessary, completely at our expense; 2) Bearing the cost of settling
the claim if it proves valid, in order to perfect your title and keep
you in possession of your property.
BY NOW, YOU KNOW THE ANSWER TO OUR QUESTION
WHAT IS TITLE INSURANCE?
It is assurance that possible clouds on the title to the land
you are buying which can be discovered from the public records
have been called to your attention so that such defects can be
corrected before you buy. And
It is insurance that, if any undisclosed claim covered by your policy
arises out of the past to threaten you ownership of real estate, it will
be disposed of, or you will be reimbursed, exactly as your title insurance
ONLY ONE PREMIUM
Unlike other forms of insurance, the original premium is your
only cost as long as you or your heirs own the property. There are no
annual payments to keep you Owners Title Insurance Policy in force.