IMPORTANT REASONS TO PURCHASE OWNER'S TITLE INSURANCE

Owner's Title Insurance will protect the homeowner(s) against some latent (or hidden) risks that would not be disclosed by even the most meticulous title search of the public records. It also will pay all legal fees regarding any necessary defense of the title to your land. Some hidden risks with the history (prior owners) and current state of the title may be: Forgery; Fraud (misrepresentation) in connection with the execution of documents; Deeds executed under false Powers of Attorney; Undue Influence (under pressure) on a grantor (seller) or Executor under a Will; Impersonation by those purporting to be owners of the property; Incorrect representation of marital status of a grantor (seller); In some cases, undisclosed or missing heirs; In some cases, a Will was not properly probated; In some cases, mistaken interpretation of Wills and Trusts; Mental incompetence of grantors; Conveyance by a minor; In some cases, birth of heirs subsequent to the date of a Will; In some cases, inadequate Surveys; In some cases, incorrect legal descriptions; Non-delivery of Deeds; Unsatisfied claims not shown on the public records; In some cases, confusion and/or falsity due to similar or identical names; In some cases, dower or courtesy rights of ex-spouses of former owners; Incorrect indexing by the Registry of Deeds; Clerical errors in recording legal documents; Delivery of a Deed after the death of a grantor; The one-time cost to purchase Owner's Title Insurance, which is optional, is based on the purchase price of the home that you are buying; whereas, Lender's Coverage (Buyer is required to purchase) is based on the loan amount. Owner's Title Insurance will protect you from these risks, as opposed to preventing these risks, in an amount up to the purchase price for the duration of your home ownership.