Oxford Title LLC
Why Title Insurance
An appraisal determines the value.
- An inspection lets you know the condition of the home.
- A survey indicates the precise property lines and locates matters of record that may affect your use of the property.
- And the title insurance company searches public records to make sure your home is free of old claims.
Although a thorough search of the records is made before the transfer of property, fraud, unforeseen events and human error make 100 percent risk elimination impossible. A mortgage lender will require you to purchase title insurance to protect the lender’s investment, but Lender’s Title Insurance does not protect you.
Owner’s Title Insurance is not required by lenders for home mortgages, but it is one of the most important and affordable protections you can buy. For a one-time fee paid at closing, it protects you for the entire time you own the home. Lenders demand title ownership protection … and so should you.
Why do you need both policies?
Let’s imagine you purchase a home worth $500,000*, make a down payment of $150,000 and take out a $350,000 mortgage. If a claim made against your property is successful, you could lose title to your home. Under the Lender’s policy, the lender will be reimbursed for its $350,000 investment in your mortgage. Without an owner’s policy, you could lose:
- Your home
- Your $150,000 down payment
- Any equity you have built in your home
- Any appreciation in your home’s value
- The value of any improvements made to your home
- The cost of legal fees to defend ownership of your home
- The value of your time in improving your home
- The opportunity to sell or refinance your home in the future
- What kind of claims can be made that would jeopardize your rights?
- Discovery that the original deed was forged.
- A deed is valid but provided without consent from a co-owner.
- Incorrect boundary and easement problems.
- Undisclosed easements and taxes.
- Unknown or missing heirs with claims to the property.
- Discovery that a previous lender still has claim to the property.
- A lien or claim that may not have been recorded, from a contractor who made improvements on the property.