- Posted August 16, 2014 by
west hollywood, California
Title insurance protects buyer from later claims on property
Title insurance is insurance that protects a real estate buyer and sometimes a lender from later financial claims on that property.
Title insurance is common in the United States. The first title insurance was issued in Philadelphia in 1876. Title insurance companies are now found in all states, all major cities and many smaller cities.
Today, title insurance protects people who invest in real estate from legitimate and false claims. Legit claims are things like mortgages and liens that a title search did not find. False claims are a much bigger problem.
A false claim can be just about anything. Crimes like ID theft and fraud are leading people to make false deeds and mortgage claims on property as an easy way to make fast money.
It may sound impossible, but it happens every day. Real estate title fraud just doesn’t grab headlines the same way identity theft does. Title fraud sometimes has to go through civil court to be settled, which means the media doesn’t give it as much attention.
Further, getting criminal charges pressed in a title fraud case is often difficult.
Title insurance protects you from these criminals by providing legal defense against their claims.
If it happens that a claim is legitimate, title insurance will also pay off the claim.