Title Insurance…Why You Need It

I often have people question the need for title insurance.  They feel that they can easily go down to the state recording office and find out any thing they need about a property.

I would never want to purchase a property without title insurance.  There are so many ways to cloud a title that I am constantly learning about new ones.  After 17 years in the business, I still find out about new title issues. 

Here are some of the possible problems that title insurance will protect against:

  • Invalid Deeds…I once talked to a couple who purchased a property as husband and wife even though they weren’t married.  They did not go through a title company and did not have insurance.  Of course, I declined to list that property knowing that the only way to clear the title was for them to admit to fraud. 
  • Unknown Easements:  Often easements will be granted across a 160 acre homestead that is later subdivided.  Will you recognize that the 50 year old easement now runs along your one acre lawn if you do the search yourself? 
  • Incorrect Legal Description: It is not uncommon for a property to transfer with an incorrect legal description.  A title company will catch that and help to correct it.

Those are just a few problems, there are many potential pitfalls in the transfer of title that a title policy helps to avoid.  Here is a list of 27 possible nightmares.

Mat-Su Title in Wasilla has an informative website.  They also include some helpful forms.