Owners Title Insurance Facts For MA Properties

First time buyers often ask about owners title insurance, what it covers, and if they need it. Lender’s title insurance is required with most loans, however, an owner’s policy is normally optional. Home buyers must evaluate the facts and make their own determination based on the costs and coverages. In this article you will find owners title insurance facts for MA properties.

Do Not Mistaken a Title Search for Insurance

Prior to settlement, a title search is typically performed by a closing attorney. This identifies that no other party has a right to the real estate (based on records on file) and that the title is available to be given to the buyer. Title searches are not fool proof and does not always detect hidden issues in the title. Owners title insurance will shield you from un-caught title problems and the legal fees associated with protecting your rights to a home.

Owners Title Insurance Extent of Coverage

Owners title insurance is a one-time fee at closing that will cover you for the lifetime that you retain ownership of the real estate. You can purchase it at almost any time, but it is normally less expensive when purchased at closing. The charge is based on the principal loan amount.

Owners Title Insurance Facts For MA Properties and Items Covered

Owners title insurance standard coverages include…

• Fraud related to the execution of past title transfers.
• Undue influence on a seller or executor (of a will).
• False impersonation by those purporting to be owners of a home.
• Erroneous marital status of a seller.
• Mental Incapacity of grantors.
• Conveyance of a under-aged party.
• Failure to deliver deeds.
• Unresolved issues not noted in the records.
• Inconsistent indexing at Registry of Deeds.
• Typographical mistakes in recording legal documentation.
• Delivery of deeds proceeding the passing of a seller.
• Deeds executed under false powers of attorney.

Some policies additionally include…

• undisclosed heirs.
• Wills not properly probated.
• Incorrect interpretation of trusts.
• Additional heirs after the date of a will.
• Incorrect property surveys.
• Incorrect legal descriptions.
• Problems caused by identical names.

The above is merely an introduction. Speak with a local title company for specific owners title insurance facts for MA properties and costs, as they normally differ depending on the company. This blog should not be construed as legal information and is subject to change.