After your sales contract has been accepted, a title professional will search the public records to look for any problems with the home’s title. More than 1/3 of all title searches reveal a title problem that title professionals fix before you go to closing. For instance, the previous owner may have failed to pay local or state taxes.   Title professionals seek to resolve problems like these before you go to closing. What happens if a problem arises after you move in?    

Sometimes title problems occur that could not be found in the public records or are inadvertently missed in the title search process. To help protect you in these events, it is recommended that you obtain an Owner’s Policy of Title Insurance to insure you against the most unforeseen problems.

Owner’s Title Insurance, called an Owner’s Policy, is usually issued in the amount of the real estate purchase. It is purchased for a one-time fee at closing and lasts for as long as you or your heirs have an interest in the property. Only an Owner’s Policy fully protects the buyer should a covered title problem arise with the title that was not found during the title search. Possible hidden title problems can include:

• Errors or omissions in deeds
• Mistakes in examining records
• Forgery
• Undisclosed heirs

The bottom line is that your title company will be there to help pay valid claims and cover the costs of defending an attack on your title. Receiving an Owner’s Policy isn’t always an automatic part of the closing process. The fee is a one-time fee paid at closing and the Owner’s Policy protects you for as long as you or your heirs have an interest in the property.