|7385 W Hwy 50
Salida, CO 81201
|Understanding Title Insurance
Salida - Buena Vista - Chaffee County - Collegiate Peaks area - Arkansas Valley - San Luis Valley
There are exceptions that will be in your title insurance and these exceptions will be in your
policy. All title insurance policies have these exceptions but you need to know
what they are. The most common exceptions are:
Taxes that are not on public record
Assessments that are not on record
Tenants that have not been disclosed
Mechanics liens that have not been recorded
Easements not on record
If you want to get these things included in your policy you may be able to get extended
coverage but it will cost you more money. The title insurance company will let you know what
your options are in terms of your policy.
You will find that zoning factors and anything that comes up after your policy may be
exceptions. Also subdivision and building codes and anything that is not on record and that
has not been disclosed to the insurance company. It is imperative that you fill them in on
everything concerning your property or else they cannot cover you.
The lender's policy will have endorsements attached to it that will protect from things that
are not disclosed and things that cannot be known without getting an inspection or a survey
done on the property. This also pertains to condo property.
When you are going over your title policy you need to ask any questions that you have. It is
important that you understand what is covered and what is not. If you do not understand
something you need to ask your attorney, your escrow agent or the insurance company
itself. If you are going to be getting changes done to the title insurance you need to take
care of that before escrow closes. Remember that title insurance will protect you from
whatever is already in existence not future liens or judgments
Purchasing your home is an important decision. But how does one know that the property
they purchased has a clear title? Because unknown problems can be hidden in the history
of a property's title, homeowners pay a title insurance company for title insurance.
Title insurance companies provide title insurance. Title insurance is an insurance policy that
guarantees the property title is free from the problems of hidden liens and claims. The title
insurance company searches public records for the property to make sure there are no
problems in the title's ownership and history. The fee for title insurance is usually included
in the itemization of closing costs from the lender and is a one-time fee. Possible hidden title
problems your title insurance company may find can include:
Errors or omissions in deeds
Mistakes in examining records
Liens for unpaid taxes
Liens by contractors
Title insurance pays for title companies to search for problems in a property's title by
examining public records.for:
By searching the history of the property's title, the title insurance company can assure the
new owner of clear ownership to their new property and that no outstanding debts or
unknown ownership issues are associated with their new home.
In addition, besides securing a good search on a property's title, the title insurance
company will insure the property owner as long as s/he owns the property. Therefore, if a
problem arises at a later date, the title insurance policy will cover legal fees in defense of a
claim against the property that is covered under the title policy.
From Bobbie Sage,
Your Guide to Personal Insurance.