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.
