What is Title Insurance?

A title insurance policy assures that the transfer of ownership is completed smoothly, that your rights and interests in a property are as you expect them to be and that you receive protection against any undiscovered claims which could arise in the future to threaten your title and the possession of your property.
In cases where property has changed hands over time, many individuals and entities may develop rights and claims to a particular property. The current owner's rights, which often involve family and heirs, may be unclear, and there may be other parties, such as lenders, public utilities, or private contractors, who believe they also have a right to a property. Before your real estate transaction closes, Forehand Title Company performs an extensive search of all recorded documents pertaining to the property. These records are then examined by our experienced title officers who are trained to determine just how all of these recorded documents may affect the current status of ownership. This thorough examination generally allows any pending title problems to be indentified and cleared prior to the purchase of the property.
Title insurance is the most effective, most accepted and least expensive way to protect ownership rights.

Principal forms of title insurance

There are two principal forms of title insurance:
Lender's Policy- is usually issued for the amount of the mortgage. It pays the lender if a problem arises.
Owner's Policy- provides seperate coverage for the borrower. An owner's policy remains in effect for as long as you or your heirs own the property.

Principal features of title insurance

Protection: If a claim is made against your title as the insured, the title company will, at its own expense, defend the title and will pay losses within the coverage of the policy if they occur. This is true regardless of how many claims are brought during the life of the policy.
One-time premium payment: Unlike other forms of insurance, the original premium is your only cost as long as you or your heirs own the property. There are no annual payments to keep your title insurance policy in force.