| When you are buying real estate, title insurance is | | | | Down the line, let's say the sub-contractor never |
| an insurance policy purchased from the title | | | | got paid for his work on your home, or the |
| company. The company researches the history of | | | | builder never paid off his mortgage. The |
| the title, ensuring that the real estate in question | | | | sub-contractor or lender could conceivably place a |
| is legally clear to sell. The title insurance means | | | | lien on your property, and you would be |
| that the title company is willing to back their | | | | responsible for these costs. Or, you purchase a |
| research and correct any mistakes if it is later | | | | home that is being sold because the previous |
| found that the land should not have changed | | | | homeowner passed away. Years down the line, a |
| hands in the first place. | | | | long-lost child of the homeowner could knock on |
| Title insurance may be required to obtain a | | | | your door and claim to have inherited your house |
| mortgage, because it protects the lender in case | | | | from the previous owner. There are all sorts of |
| of a title issue. This is lender's title insurance; you'll | | | | situations like these that you simply can't foresee |
| also want an owner's policy, which provides you | | | | when buying real estate. Title insurance would |
| protection as the buyer. Be sure that you know | | | | cover these issues; in many cases they will |
| exactly what title insurance covers and what it | | | | negotiate with these claimants so that you can |
| does not cover. It does not cover liens that do | | | | keep your property. |
| not show on public records. It does not cover | | | | Title insurance is only available after a land survey |
| easements or other disclosed title issues, or some | | | | is conducted on the land in question. ALTA and |
| other situations. Despite this, without this | | | | ACSM land surveys cover not only the boundaries |
| insurance you are assuming quite a bit more risk | | | | of the property, but also additional information |
| when purchasing a home or other piece of real | | | | that may go against the purchaser's interests, |
| estate. | | | | such as evidences of possession. The land |
| When would title insurance cover you? For one | | | | surveyor you choose for an ALTA land survey |
| example, you purchase a newly constructed | | | | has your best interest in mind as they search to |
| home that is part of a subdivision. The title is | | | | discover any information that would show |
| clean, and the purchase goes through smoothly. | | | | purchasing the land is not in your best interests. |