WHY PURCHASE AN OWNER'S TITLE INSURANCE POLICY?
- Information provided by Sweeney Closing Services, LLC, www.nhclosings.com and First American Title

Throughout the years, a property may have changed hands many times through sale, inheritance, foreclosure or bankruptcy. In some case s, there could be defects in the title that remain hidden despite the most th o rough search of public records. A problem may have occurred long before the property was purchased by you, the new owner, and could deprive  you of ownership or your ability to sell your property in the future.

If an error in title has occur r ed and has never come to light, it puts your title in jeopardy. You are at risk to lose your property and the money you paid for it. Even if you successfully defend your right of ownership, the cost in time and legal fees could be exorbitant.

Should the marketability of your title be challenged, you need immediate and expert legal support. The extent of the defect and the work to clear the title must be performed diligently and completely.  An OWNER ' S TITLE INSURANCE policy provides you the protection you need against unforeseen defects in the title of your property.  There is a "1" time cost to purchase an Owner ' s Title Insurance p olicy which is typically paid at closing. The Owner ' s Title Insurance c overage remains in force until the property is sold.

It is common misconception that you, the buyer, are protected under the Title Insurance policy you are required to pay on behalf of the lender at closing. T he lender will require the borrower to purchase LENDERS TITLE INSURANCE to protect their investment. It is important to note the "lender's policy" covers the lender ONLY and does not provide coverage to the buyer/borrower.

Perhaps you think defects in title are a rare occurrence and are nothing to worry about. However, with the refinance boom during the last few years has come an insurgence of un-discharged mortgages (or liens), which can be difficult to track down and clear up due to bank mergers and the frequent resale of mortgage loans.

15 reasons why you should purchase Owner's Title Insurance:

1. Forgery
2. Fraud in connection with execution of documents
3. Undue influence on a grantor
4. False impersonating by those purporting to be the owners
5. Incorrect representation of marital status
6. Undisclosed or missing heirs
7. Wills not properly probated
8. Mistaken interpretation of wills and trusts
9. Mental incompetence
10. Conveyance by a minor
11. Birth of heirs subsequent to the date of the will
12. Incorrect legal descriptions of property
13. Deeds executed under false or expired powers of attorney
14. Confusion due to similar or identical names
15. Incorrect indexing at the registry of deeds

Arm yourself with the facts about Title Insurance before you elect to refuse the Owner's Title Insurance policy.
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