What is title insurance?
Title insurance is protection against loss arising from problems connected to the title to your property. Before a property is purchased, it has gone through many ownership changes. We think of all past owners as links in a chain. This is called the chain of title. A weak link in the chain could cause trouble. For example, twenty years ago an owner died and left the property to his heirs. One of the heirs could not be found; but has now surfaced to claim the property. Title insurance covers the insured party for any claims and legal fees that arise out of such a problem.
Title insurance is an insurance policy issued by an Insurance Underwriter, guaranteeing a buyer’s ownership and peaceful enjoyment against claims, liens or judgments associated with a property after the purchase is completed. Such insurance protects against losses arising from events occurring prior to the date of the policy. Unlike Real Property or Casualty Insurance where coverage starts on the day a policy is issued, title insurance being Indemnity Insurance causes coverage to stop on the day the policy is issued. Its coverage extends backward in time and guarantees that events prior to your ownership do not result in losses to you.
Title Insurance is protection from past events which may or may not be a part of the public records, but that can affect a new owners interest in the property being sold to them. Title Insurance protects against matters of public record, plus hidden title defects, such as fraud, forgery, incompetence or missing heirs, that even the most diligent title search may not discover. New Jersey Real Estate has such great value that many special laws have been enacted to protect the owner of the property and the heirs of the owner. Also many others may have rights in the property such as Mortgage and Lien Holders, Municipalities for Tax Liens, the United States for Federal Tax Liens and the others for Minerals, Oil or Air Rights. Because of these rights and the bundle of laws protecting the owners, and others that have an interest in the property, the purchase of real property must be done carefully and only after an extensive investigation of the title. Even after an extensive investigation, t
Title Insurance is protection from past events which may or may not be a part of the public records, but that can affect a new owners interest in the property being sold to them. Title Insurance protects against title defects, such as fraud, forgery, incompetence or missing heirs that even the most diligent title search may not discover. Many laws in NJ protect the owner of a property and the owners heirs.However, laws also protect others with rights to a property such as mortgage and lien holders, municipalities and the United States (for tax liens), and others with rights to fuel and natural resources.Because of the laws protecting both owners and others who have an interest in the property, property should only be purchased after an extensive investigation of the title.Despite these careful investigations, issues can arise like errors on the record, missing heirs, mental incompetence of the seller, marital status, etc. The only protection a property owner can get against the above i
