The issuance of a Title Insurance Policy ensures that as the owner, your title to your real estate is free and clear of any possible encumbrances and that you have clear title from the seller. A title insurance policy insures that you will stand protected from loss or damage as a result of any title defects.
These risks can and do result in losses to the unprotected property owner. Often the financial loss can be disatrous. It is well worthwhile to investigate the benefits to be obtained through title insurance before you complete a real estate transaction.
The Owner’s Policy is issued to the new Owner, guaranteeing the Title to the property they are purchasing is delivered to them without any title defects.
The Lender’s Policy is issued when there is a Mortgage Lien to be placed on the property. It guarantees the Title to the property for which they are lending funds, is free and clear of any encumbrances. The Lender’s Policy is issued for the amount being mortgaged against the property.
A Loan Policy offers no protection to the owner. A claim may arise that does not jeopardize the lender’s interest, but may, cause a great loss to the owner.
One of the largest benefits of Title Insurance is the obligation of the insurer to defend your claim against claims of others. A neighbor may claim rights to a portion of your . Without Title Insurance, you would bear the cost of settling this dispute through the courts, regardless of the validity of the claim.
In a word... forever. You and your heirs are protected for as long as you or your heirs own the property.
Fees for Title Insurance in the State of Illinois are regulated and can easily be calculated on a Rate Schedule. Please call for a quote. (612-667-9494)
The Rate Schedule is used to figure either the Lender's or the Owner's Policy, whichever amount is higher. The other policy if issued simultaneously is $75.00.
Title reports, if title insurance is not required, may be issued after a title search. A report of title discloses the results of the examination of title and certifies as to record owners, unreleased mortgages, liens and other encumbrances, such as unpaid taxes and special assessments affecting title of real estate
The major advantage of title insurance is that it protects against loss for some defects not revealed by a report of title. A report of title is merely a history of the title as disclosed by the public records.