What is Title Insurance
Title insurance protects homeowners from financial loss and related expenses if there is a covered defect in title to the property. Unlike other types of insurance, title insurance looks to prevent risk instead of assume risk. A title examiner will review the history of a property seek to eliminate any title issues before a purchase happens and a homeowner pays a one-time premium at closing instead of making monthly payments for the life of the policy.
Only an approved title insurance agent, like Jordan & White, can issue a title insurance policy.
How Title Insurance Works in Massachusetts
A Lender’s Policy provides no coverage to the homeowner. A Lender’s Policy insures that your lender has a valid, enforceable lien on your property. Most lenders require borrowers to purchase this type of insurance policy to protect their investment.
An Owner’s Title Policy is designed to protect you from covered title defects that existed prior to the issue date of your policy. If a valid claim is filed, your Owner’s Policy, subject to its terms and conditions, will cover financial loss up to the face amount of your policy.
When you buy a house, the closing attorney must conduct a title examination and certify that the title is marketable before issuing a title insurance policy. While the title examination will look into mortgages, bankruptcies, estates, tax liens, and foreclosures, even the most careful title examiner cannot find the hidden defects that can arise when an owner sells or refinances the property. This is why the owner’s title insurance matters. It is a way to protect your home, which is likely your largest investment.
Common Title Insurance Issues in Massachusetts
There are several title issues and hidden defects that can arise months or years after a homeowner purchases a property. The most common examples that an Owner’s Title Policy will cover are:
- Mistakes in recording or indexing legal documents
- Improper execution of documents
- Unreleased mortgages
- Undisclosed or missing heirs
- Forgeries or fraud
- Unpaid taxes and assessments
- Unpaid judgements and liens
- Mental incompetence of grantors on the deed
- Impersonation of the true owners of the land by fraudulent persons
Title Insurance Help From Jordan & White in Massachusetts
Contact Jordan & White to have a dedicated team of experienced lawyers ready to work with you to resolve title insurance issues. The process of lending, buying, and owning a home is complicated, but you don’t have to do it alone. If you’re struggling with title insurance issues, call Jordan & White at (978) 744-2811.