QUESTIONS & ANSWERS
All About Title Insurance
HOW DOES TITLE INSURANCE PROTECT MY INVESTMENT IF A CLAIM SHOULD ARISE?
If a claim is made against your property, title insurance will, in accordance with the terms of your policy, assure you of a legal defense and pay all court costs and related fees. Also, if the claim proves valid, you will be reimbursed for your actual loss up to the face amount of the policy.
THE OWNER OF THE PROPERTY HAS A DEED. ISN’T THAT PROOF OF OWNERSHIP?
WHAT IS A LENDER’S POLICY?
WHAT IS AN OWNER’S POLICY?
An owner’s policy protects you, the purchaser, against a loss that may occur from a fault in the ownership or interest you have in the property. You should protect the equity in your new home with a title policy.
WHAT DOES TITLE INSURANCE PROTECT FROM?
- Undisclosed heirs
- Forged deeds, mortgages, wills, releases and other documents
- False impersonation of the true land owner
- Deeds by minors
- Documents executed by a revoked or expired Power of Attorney
- False affidavits of death or heirship
- Probate matters
- Fraud
- Deeds and wills by persons of unsound mind
- Conveyances by undisclosed divorced spouses
- Rights of divorced parties
- Deeds by persons falsely representing their marital status
- Adverse possession
- Defective acknowledgments due to improper or expired notarization
- Forfeitures of real property due to criminal acts
- Mistakes and omissions resulting in improper abstracting
- Errors in tax records
WHAT IS NOT COVERED BY TITLE INSURANCE?
MUST I BUY TITLE INSURANCE WHEN CLOSING A REAL ESTATE TRANSACTION?
There is no requirement to buy title insurance; but, realistically, most mortgage companies, banks and credit unions will require title insurance to protect ther interest in the property. However, it is recommended that you do purchase title insurance unless you have fully investigated the condition of title and are willing to accept the property with the liens and restrictions shown.
CAN I “SHOP AROUND” TO FIND A BETTER DEAL ON MY TITLE INSURANCE?
Not really. Title insurance rates in Louisiana are regulated by the state’s insurance commission and will not vary from one title company to another. However, slight variations in a title insurance quote can occur if a lower degree of coverage is offered. Premium amounts are based upon the purchase price and loan amount of the mortgage.
At The Closing
HOW DOES TITLE INSURANCE PROTECT MY INVESTMENT IF A CLAIM SHOULD ARISE?
If a claim is made against your property, title insurance will, in accordance with the terms of your policy, assure you of a legal defense and pay all court costs and related fees. Also, if the claim proves valid, you will be reimbursed for your actual loss up to the face amount of the policy.
THE OWNER OF THE PROPERTY HAS A DEED. ISN’T THAT PROOF OF OWNERSHIP?
WHAT IS A LENDER’S POLICY?
WHAT IS AN OWNER’S POLICY?
An owner’s policy protects you, the purchaser, against a loss that may occur from a fault in the ownership or interest you have in the property. You should protect the equity in your new home with a title policy.
WHAT DOES TITLE INSURANCE PROTECT FROM?
- Undisclosed heirs
- Forged deeds, mortgages, wills, releases and other documents
- False impersonation of the true land owner
- Deeds by minors
- Documents executed by a revoked or expired Power of Attorney
- False affidavits of death or heirship
- Probate matters
- Fraud
- Deeds and wills by persons of unsound mind
- Conveyances by undisclosed divorced spouses
- Rights of divorced parties
- Deeds by persons falsely representing their marital status
- Adverse possession
- Defective acknowledgments due to improper or expired notarization
- Forfeitures of real property due to criminal acts
- Mistakes and omissions resulting in improper abstracting
- Errors in tax records
WHAT IS NOT COVERED BY TITLE INSURANCE?
MUST I BUY TITLE INSURANCE WHEN CLOSING A REAL ESTATE TRANSACTION?
There is no requirement to buy title insurance; but, realistically, most mortgage companies, banks and credit unions will require title insurance to protect ther interest in the property. However, it is recommended that you do purchase title insurance unless you have fully investigated the condition of title and are willing to accept the property with the liens and restrictions shown.
CAN I “SHOP AROUND” TO FIND A BETTER DEAL ON MY TITLE INSURANCE?
Not really. Title insurance rates in Louisiana are regulated by the state’s insurance commission and will not vary from one title company to another. However, slight variations in a title insurance quote can occur if a lower degree of coverage is offered. Premium amounts are based upon the purchase price and loan amount of the mortgage.
General Legal Questions
HOW DOES TITLE INSURANCE PROTECT MY INVESTMENT IF A CLAIM SHOULD ARISE?
If a claim is made against your property, title insurance will, in accordance with the terms of your policy, assure you of a legal defense and pay all court costs and related fees. Also, if the claim proves valid, you will be reimbursed for your actual loss up to the face amount of the policy.
THE OWNER OF THE PROPERTY HAS A DEED. ISN’T THAT PROOF OF OWNERSHIP?
WHAT IS A LENDER’S POLICY?
WHAT IS AN OWNER’S POLICY?
An owner’s policy protects you, the purchaser, against a loss that may occur from a fault in the ownership or interest you have in the property. You should protect the equity in your new home with a title policy.
WHAT DOES TITLE INSURANCE PROTECT FROM?
- Undisclosed heirs
- Forged deeds, mortgages, wills, releases and other documents
- False impersonation of the true land owner
- Deeds by minors
- Documents executed by a revoked or expired Power of Attorney
- False affidavits of death or heirship
- Probate matters
- Fraud
- Deeds and wills by persons of unsound mind
- Conveyances by undisclosed divorced spouses
- Rights of divorced parties
- Deeds by persons falsely representing their marital status
- Adverse possession
- Defective acknowledgments due to improper or expired notarization
- Forfeitures of real property due to criminal acts
- Mistakes and omissions resulting in improper abstracting
- Errors in tax records
WHAT IS NOT COVERED BY TITLE INSURANCE?
MUST I BUY TITLE INSURANCE WHEN CLOSING A REAL ESTATE TRANSACTION?
There is no requirement to buy title insurance; but, realistically, most mortgage companies, banks and credit unions will require title insurance to protect ther interest in the property. However, it is recommended that you do purchase title insurance unless you have fully investigated the condition of title and are willing to accept the property with the liens and restrictions shown.
CAN I “SHOP AROUND” TO FIND A BETTER DEAL ON MY TITLE INSURANCE?
Not really. Title insurance rates in Louisiana are regulated by the state’s insurance commission and will not vary from one title company to another. However, slight variations in a title insurance quote can occur if a lower degree of coverage is offered. Premium amounts are based upon the purchase price and loan amount of the mortgage.