A title insurance policy insures that, as a new owner, your title to the property is free and clear of liens and that you have clear title from the sellers. In addition, a title insurance policy insures that you will stand protected from loss or damage resulting from any title defects and will reveal to you items such as easements, reservations, and protective covenants which might have an effect on your use of the property. Some possible defects include from forged documents, mistakes in public records, fraud, incorrect property descriptions, and access to the property.
Title Services of the Plains will provide a thorough search of the public records to reveal possible liens, claims, defects, or encumbrances against the property.
There are two primary types of title insurance policies:
1.) Owner’s Policy. The Owner’s Policy is issued to the new owner, insuring that the title to the property they are purchasing is delivered to them free and clear of liens and subject only to easements, restrictions, reservations, and protective covenants as disclosed in the policy.
2.) Lender’s Policy. The Lender’s Policy is issued when there is a mortgage lien to be issued on the property. It insures that the lien of the lender to be insured is a first lien on the property.