The Owner’s Title Insurance Policy Protects Homeowners and Real Estate Professionals

home title insuranceThe Owner’s Title Insurance Policy is an “optional” purchase, but definitely a valuable one. The policy is a smart investment into personal security, and it’s valuable and shielding.

Yes, as a homebuyer you’re likely already paying for title insurance, but it’s likely that you’re simply paying for a Lender’s Policy of title insurance which protects your lender, not you. This frequently required cost does not protect your investment, only an Owner’s policy can do that. Also, while loan policy simply covers the amount of the mortgage and last until the debt has been settled. Contrarily, protection lasts an as song as your or your heirs have an interest in the property when the Owner’s policy is concerned.

Title issues can arise whether you’re in a newly constructed home or an older structure. New properties are built on existing plots of land, where title issues could already be in place. The Mechanics’ lien describes the liens that develop from unpaid construction debts, and other debts or liens could occur in the form of HOA liens, easements, restrictions, or legal rights of access. If only buying vacant land, title issues arise in the form of unclear property boundaries, the discovery of prior interests, omissions in wills, divorce settlements, real estate taxations, unrecorded deeds, or divorce settlements.

Whether dealing with a home or land property, the length of ownership absolutely doesn’t mean that new owners have escaped unsettled issues. At any time, the property title could be impacted by issues caused by refinancing, divorce settlements, life estates, unpaid taxes municipal utility bills or assessments. This is even an issue for those who buy a home with the sole interest of flipping it.

When selling a flipped house, a new purchaser’s title agent will be able to work far more efficiently if an Owner’s policy has already been purchased. Title defects impact insurability and the ability to resell the property when issues are unearthed during the settlement process. Additionally, when buying a foreclosure, the attorney who reviewed the property’s back title and validity of the foreclosures is the only attorney able to perform the bank’s foreclosure work. This is to ensure that outstanding liens and clouds on the title don’t sneak up on the buyer after the completion of the transaction.

Title insurance stumps title issues whether purchasing an investment property or a vacation property. The long-term protection is a valuable investment that protects a buyer and covers the cost of settling and/or defending a title claim. Homes tend to be a buyer’s largest investment, and the one-time premium ensures that buyers and their heirs can be comfortable within their home. The Owner’s Policy is considered the standard of care within the real estate industry, and it’s frequently included in contracts for the protection of buyers.

Yes, it’s possible that you may have looked at the title commitment and didn’t see any issues, but you aren’t a professional. Assured Title is trained to scour contracts and unearth hidden issues in the title chain. The Owner’s Policy is a defensive dogma that eliminates the potentially of taking up responsibility for fraudulent activity.


Assured Title Agency is a Denver, Colorado-based title insurance company dedication to provided the highest quality customer service and peace of mind when conducting complex real estate transactions. Be sure to visit our websites: http://beassurednow.com and AssuredTitleAgency.com. #titleinsurance #Denver #BeAssuredNow