By Being on Neither Side,
We Are On Both Your Sides
(Continued)
By Troy St. John
Fidelity National Title
There are two questions I am asked by buyers and sellers.
What is Escrow
What is Title & Title Insurance
This is the second of the two most common questions
I am asked by buyers and sellers:
"What Is Title & Title Insurance?"
Title Insurance protects your title to real estate that you are about to acquire. To understand why title protection is essential, we need to consider real estate for a moment.
Real Estate has probably always been considered man's most valuable material 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 his family and heirs. Also, there may be others - in addition to the owner - who have "rights" in the property you are going to buy, perhaps governmental bodies, or contractors, for example.
Some of the things a title search uncovers are any unpaid taxes or mortgages judgements against previous owners, easements, and many court actions or 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.
Protection against loss from claims on real estate which cannot be discovered by examination of the public records is the second part of the two-fold benefit which a title company such as Fidelity National Title provides.
For example, the title to the home which you have paid for - and to which you have received a deed - could be threatened or lost by such circumstances as forgery, confusion due to similar names, or error in the records. These contingencies will be covered in your policy of title insurance.
If a claim is made against your title as covered by your policy, the title insurance company protects you by (a) defending your title, in court if necessary, at our expense (b) bearing the cost of settling the claim if it
It is assurance that every possible cloud on the title to the land you are buying - which can be discovered from the public records -has been called to your attention so that such defects can be corrected before your buy. And - it is insurance that, if any undisclosed claim covered by your policy arises out of the past to threaten your real estate, it will be disposed of, or you will be reimbursed, exactly as your title insurance policy provides.
Unlike other forms of insurance, the original premium is your only cost as long as you own the property. There are no annual payments to keep your Owners Title Insurance Policy in force.
It has been a pleasure answering these questions for you.. If you would like more information, please contact me at the e-mail address or telephone number below.
Want To Know More? Contact Troy
Troy St. John is Vice President of the Hawaii Division of
Fidelity National Title Insurance Company, City Financial Tower,
201 Merchant St., 21st Floor, Honolulu, HI 96813.
Telephone (808) 536-0404.
