Why is Title Insurance Necessary?
Title insurance protects the property owner (our buyer) from hidden defects in title that are not evident (not showing up on record). Examples of such hidden defects include forged signatures on deeds, missing heirs, wills that have not been properly probated, and errors in recording deeds or releasing liens. Although claims involving title defects do not occur on a daily basis, the potential loss in the event of a claim does arise, can be catastrophic to a property owner who does not have title insurance.
For those of you who own a home and are currently refinancing, title insurance will be required by the lender. (See What is Lender's Title Insurance?)
