TITLE INSURANCE
 TITLE PROFESSIONALS ASSOCIATED WITH SLBR
Title is the actual ownership of property. It can be held solely, jointly, in common or in corporate or partnership form. The deed is the evidence of that ownership. Paying money for property and receiving a deed does not secure free and clear title for an owner. Once settlement is final, the buyer is financially responsible for any valid claims made against the property -- unsettled property matters under the past owners become the current owner's responsibility.
A title defect is anything that is wrong with a title - including an easement, encroachment or a lien that may or may not have been recorded with the city building department or the county recorder's office. Often a title company will refuse to take liability for unrecorded liens, such as existing but unrecorded leases or mechanics liens.
One of a title company's main functions is to conduct a thorough title search of the property, which is a review of all matters affecting the state of ownership. The search for defects reveals tax information, right of ways for power companies, and any unsatisfied liens or claims against the property.
Even the most careful investigation may fail to disclose title defects. Title insurance assures you that your investment is secure. Typically, title insurance is issued by a title insurance company and protects a property owner against the existence of title defects or claims against a property. Usually the seller is required to purchase a policy to protect the buyer; and if the buyer is obtaining a loan, the lender will require the buyer to obtain such a policy to protect the lender.
Title insurance is actually a package of two separate policies, one covering the buyer and the other covering the lender.
Title insurance costs less than 1/2 of 1 per cent of the property's purchase price. And although the premium is paid only once, at settlement, title insurance continuously protects the owner or his/her heirs as long as they own the property. There are no annual renewal payments needed to keep the policy in force.
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