What Is Title Insurance and Why Am I Paying For It?
What is title insurance and why am I paying for it? This is a question that is asked a lot at the closing table. The easiest way to explain why you might need title insurance is to give you an example of what CAN happen.
Let’s take a look at Jane and Jason (fictional). They’ve lived in their house for 35 years. They have several acres. They want to split two of their acres off of the main parcel and sell them to Dawn and David, their children. They work with the township to acquire the split. Dawn and David’s lender orders their title work. Once the search has been done the title work comes back with an issue. When Jane and Jason purchased the property, they bought it from the City of Danville. Upon searching the property, we found that the City of Danville had never received a Deed when THEY purchased the property. SO, they never had the legal right to sell. OOPS. Even though Jane and Jason have lived there for most of their lives, the property is technically not all “theirs” since it was never properly deeded to the City of Danville to begin with.
This is a situation where title insurance comes in VERY handy. It seems odd that something like that can happen, but it does. Our job is to protect our customers and make sure that title is free and clear of any liens or interests.
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