Knoxville Title Agency FAQ
How can Title Insurance Protect Me?
Title Insurance policies insure titles to real property for owners and mortgage lenders. They provide the following protections: a) Payment of loss arising from hidden defects. Defects not found during a title examination or recording. b) Payment of legal expenses incurred to clear title defects. Which threatens the lender or owner with the loss. c) Assurance that the marketability of the property remains unimpaired from title defects.
Policies issued based upon a search and review of the public land records. Also, other relevant documents. A thorough examination is to determine title ownership. Also, any other matters affecting the property title and use of that property. Items that may affect a title include easements, restrictions, rights of way and judgment liens.
The coverage provided by a title policy is long-lived. The mortgage holder continues to protect upon foreclosure of the insured mortgage or deed of trust. The owner of real estate is insured for as long as he or she owns the property, or is the holder of a purchase money mortgage or deed of trust secured by the property. Also, is liable under the warranties included in his or her deed to convey the property.
Does the Bank or Lending Institution Always Arrange for Title Agency?
It usually does, but the lender only insists on a loan policy. The lender does not arrange for an owner’s policy that ensures an owner’s interest in the property. You could lose your equity if you do not have the Owner’s Title Insurance.
If I Don’t Have Owner’s Title Insurance, How Will a Claim Against My Home Affect Me?
It could be very serious. It would mean you would have to pay all expenses involved with the legal defense of your rights, and could even result in complete loss of your equity if your defense is unsuccessful.
What is a Title Defect?
It is any one of a number of things that could jeopardize your interest. It could be an unsatisfied mortgage, lien, judgment or other recorded claim against the property. A defect could also take the form of a claim by a third party such as an unknown heir or prior owner whose title transfers by forgery or fraud.
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