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    Ohio-Title-AgentPurchasing a home is generally the largest and most important investment you will ever make. When you purchase real estate, you get more than just a building, you get title to a piece of land that has been owned by others before you. You want to be assured that your real estate title is without defect; and you want to be protected in the event that it is not. Title Insurance is issued for this purpose.

    The Deed that the seller provides to transfer the title to you will be filed at the County Recorder’s Office and becomes one of many documents found in the property’s entire historical record. Before issuing Title Insurance, an insurer must first search or examine this historical record to determine insurability of the title. One type of risk associated with Title Insurance is “human error”, such as a recorder’s error or a mistake made during the title search. The other type of risk is called a “hidden defect” or a happening that cannot be determined by searching the records. Examples of this are the presence of a recorded mortgage release that is later found to have been forged or the missing heir of a past owner coming forward to claim ownership. In both cases, a challenge to the title could render a serious loss.

    Most lending institutions require title insurance, insuring that the lender has a valid first mortgage on the property. However, this insurance policy, called a Loan Policy of Title Insurance, protects only the lender and not the purchaser. The purchaser must obtain an Owner’s Policy of Title Insurance in order to be protected. When an Owner’s Policy is issued in connection with the lender’s loan policy, it is called simultaneous issue and the loan policy premium is greatly reduced.

    The Owner’s Policy of Title Insurance protects the purchaser from its effective date back to the origin of title. For a one time premium, paid at the time of closing, a purchaser is covered for as long as he/she or his/her heirs retain an interest in the property. The title insurer, without expense to you, will defend you against any attack on the title to your property as insured. Before buying real estate, request an Owner’s Policy of Title Insurance. The one-time premium is small, but the protection is great.