Bucks County Real Estate Web Resource

Title Insurance Explained

One of the largest possessions a family in Bucks County will partake in is their home. As a result, many laws have been passed to protect this ownership and asset. This is where Title Insurance in Bucks County comes into play, to protect the purchasers from obtaining something that is not legal to purchase or has other debts attached to it.

There are many situations that can arise, where governmental bodies, contractors, lenders, judgment creditors and the Internal Revenue Service may lay claim to property, sometimes without the owner even being aware of it. Sometimes a deed can surface that predates public record in Bucks County, putting a title in question. All these situations jeopardize the purchaser’s rights of the property.

A title insurance policy provides the homeowner with coverage against just such an occurrence. Title insurance could mean the difference between actually owning a property and just thinking you do.

The first step done prior to buying a home in Bucks County is a title search. This means a complete investigation of the property is done, including a title inspection. This involves a thorough examination of records covering all recorded judgments, street and sewer assessments, taxes and anything else related to assuring proper ownership of the property. This search is generally and ideally when a discovery of a claim on the property is made, if one is present. Occasionally, however, clerical errors or misrepresentation from previous owners can prevent an owner from knowing about claims on their Bucks County property.

Here is where title insurance comes into play. The insurance is designed to protect your rights and the rights to your property. Put simply, title insurance will pay for defending you against any lawsuits attacking your title, and will either clear up title problems for you, or pay you for any losses you may incur.

While purchasing owner’s title insurance is not mandatory, it is a very good idea. It is purchased for a one-time premium, ideally at the time you purchase your Bucks County property.

Lender’s title insurance only covers the lender and will not cover the owner, which is why owner’s title insurance should be purchased. For example, if you have paid 20% of the cost of your property for a down payment, the loan policy will only protect the 80% investment of the lender. This still leaves you responsible for your investment. This is why it is important to consider title insurance as a homeowner.

Title insurance can protect you from many situations, including forged deeds, releases or wills; undisclosed or missing heirs; instruments executed under invalid or expired power of attorney; deeds by persons of unsound mind or minors; fraud; and liens for unpaid estate, inheritance, income or gift taxes; indeed, many unforeseen situations may be thwarted by acquiring title insurance.