Title Insurance 101
Title Insurance provides investors, home buyers and/or mortgage lenders protection against losses resulting from unknown defects in the title that existed before the closing of a real estate transaction. This insurance protects against the possibility that someone else has a legitimate legal claim to the property due to fraud and/or forgery of title documents, false claims, unknown heirs, easements, errors in public records, boundary and survey disputes and liens.
In this title insurance course, Trisha Murphy of Nations Title, Inc. discusses the reasons why you NEED title insurance (providing plenty of cautionary tales along the way). She also explains what is achieved (and NOT achieved) by the title search. Perhaps of greatest importance, Trisha walks her students through the title commitment, the key document that describes the various conditions or items that need to be cleared, exclusions and exceptions that will apply to that particular policy.
The Title Commitment is made up of three parts: Schedule A (Information that identifies the specifics of the requested policy); Schedule B (Requirements); and Schedule B-II (Proposed exceptions from the coverage). Step by step, Trisha highlights the essentials sections of each part, explaining their importance and describing the information they convey.
Title insurance can be one of those things that is easily taken for granted, at least until you need it! Join Trisha Murphy for an excellent overview of what you need to know about title insurance.