If you have recently purchased or refinanced a home, chances are you have had to get title insurance. Your title insurance policy protects you against problems affecting the title to your home or property.
There are two types of title insurance – an Owner’s Policy and a Loan Policy. The Owner’s Policy protects you, the homeowner, for your investment in the property for as long as you or your heirs have an interest in the property. The Loan Policy protects the lender for the amount of the loan.
Before a title policy is issued, a title search of the public records is made in an effort to locate any potential problems that may impact the transaction. In addition, a title search also discloses easements, rights-of-way, restrictions, and mineral reservations among other matters.
While most problems can be located in a title search by skilled professionals, nearly one third of all transactions reveal a title or public record defect that even the most thorough search would not reveal. Examples include:
- Someone other than you owns your property
- Forgeries in the chain of title
- A claim by a previously undisclosed relative of a former owner
- Unpaid taxes and assessments
- Unpaid judgments
- Unpaid deeds of trusts and mortgages.
- In addition to the standard title policies, Yavapai Title Agency also handles the following title insurance products:
- ALTA homeowner’s policy
- Extended owners and lenders policies
- Other lender policies
- Trustee’s sale guarantees
- Judicial Litigation guarantee reports
Remember, title insurance protects you against the potential loss of your most valuable asset – your home or property.