Title Insurance = Peace of Mind

 As a Mortgage Banker, you understand your client’s ability to purchase a home is probably the single biggest investment they will ever make. Before helping your client close on a property, you’ll want to know that no other individual or entity has a right, lien or claim to the property.

Determining the rights and interests to a property are clear is the business of a title insurance company.

For a modest, one-time title insurance premium, your client will receive continuous title insurance protection in an amount equal to the purchase price of the property or its current market value. This premium typically includes a “owners” policy as well as the “lenders” policy.

One of the marked advantages of title insurance is that prior to a policy being issued, the title insurance company completes extensive research into relevant public records, maps and documents to trace ownership of the property and determine if anyone other than your client has an interest in the property. Through its research, the title insurance company can usually identify any title problems that may arise and have these problems cleared-up prior to closing.

The title insurance owner’s policy will describe the property and outline any recorded limitations of ownership. It will also set forth the title insurance company’s responsibilities should any claim covered by the policy terms arise. Typically the title insurance will protect your client from loss:

• If someone contests the title in legal action (the title insurance company will defend the title at no expense to your client)
• Or if there is a title defect that cannot be eliminated (the title insurance company will protect your client from financial loss – up to the amount of the policy).