What is an Owner’s Title Policy?
Home ownership continues to be one of the most important parts of the American dream, but having the deed to a piece of land does not necessarily mean the property is yours free and clear. Other individuals could potentially have certain prior rights or claims that your deed will not erase, and such rights can go back all the way to the earliest owners of your new property. You want to be sure you will remain the true owner, and that there will be no claims or liens against your new home — other than the mortgage, if applicable, that you agreed to pay. Owner’s title insurance will protect your interest in your new property.
Owner’s title insurance protects you against what you don’t know. It helps take the risk out of buying property whose legal history is long and may not be completely known to you. The so-called “hidden risks” covered by such a policy are not common, but they do exist. If your property’s ownership history carries such risks, you could lose the property and the money you paid for it.
Certain risks do exist, often as a result of errors made during past title transfers. Many different people may have owned the land and buildings over the years and there was a chance for error each time the title was transferred. If an error occurred but was not discovered until you bought the property, you may face a hidden risk (see examples below). Your ownership of the property could come into question. Owner’s title insurance protects you from such errors.
Title insurance also provides the coverages shown below:
• Protects you from financial loss due to covered claims against your title, up to the face amount of the policy.
• Pays your legal costs if the title insurance company is required to defend your title against covered claims.
• Pays successful claims against your title, up to the face amount of the policy.
• Continues protection after you no longer own the property.
Examples of hidden risks:
• Some of the more common hidden risks covered under owner’s title insurance:
• False impersonation of the true owner
• Confusion caused by similar names
• Forged deeds and other documents
• Clerical errors in public records
• Errors in recording legal documents
• Undisclosed or missing heirs
• Fraud
• Invalid divorces
• Unpaid child support lien
• Unpaid taxes (local, state, federal)
• Invalid documents executed under an expired power of attorney
• Unrecorded easements (rights of way)
• Signatures of minors or people who are not
• mentally competent
• Signatures of people represented as single but who are actually married (Ohio is a dower rights State)
Talk to a title professional at our office to learn more about an Owner’s Title Policy. Call 330-686-2282 or e-mail kaley@buckeyereserve.com