Your home is your most vital asset. Make sure your investment is protected from any unforeseen threats that might challenge your ownership of your property.
As your title insurance professional, Commonwealth Suburban offers protection from future claims or losses due to title defects that are due to past events. While you may never need title insurance, not having it when you need it could end up costing you quite a bit – even your house.
Commonwealth Suburban conducts a thorough search of the public documents associated with your property to identify any potential risks, which can include:
- Unpaid taxes
- Unsatisfied mortgages
- Judgments and tax liens against the current or past owner(s)
- Court actions
- Forgery or fraud
In the event one of these issues comes up, a residential title insurance policy may protect you by A) Defending your title, B) Bearing the cost of settling the covered matter, or C) Paying you the loss due to the covered matter. All identified issues are included in a report given to you prior to your purchase of the property. We’ll also discuss with you how to resolve these items prior to closing.
Residential title insurance is typically made up of two different policies – an Owner’s Policy and a Lender’s Policy. Both protect each party’s financial interests and legal fees should the seller’s free-and-clear ownership of the house ever come into question.
Commonwealth Suburban offers three distinct types of residential title insurance policies:
The lender is typically required to have this type of policy to protect its own financial interests and legal defense costs, as well as reimburse any remaining mortgage payments you can’t make because you’ve lost the house over someone else’s claim. Lenders typically require buyers to cover the cost of this policy.
An Owner’s Title Insurance (OTI) policy ensures that you are protected from any defects in the title that existed prior to purchasing your policy, such as liens, fraudulent signatures, improperly settled estates, or other encumbrances to the title.
A title guarantee protects the purchaser only from matters discovered on the examination of the record title, whereas, a title insurance policy insures certain defects that do not appear in the record examination.