It is often asked, "Why do homeowners need title insurance?"
Because any home, no matter how new or apparently secure, is built on land that has, undoubtedly, had many owners. Any of these owners could have, at one time, had a claim filed against them. These claims can also be filed against the land and you, as the present owner. There are other hazards as well. Things such as fraud, missing heirs and many others can, and often do happen.
Real estate is such a basic form of wealth that there are many special laws that protect ownership of land and the buildings that are built on it. Whenever, you buy property, the owner who is selling it to you has rights, as do their family and heirs. There may also be others such as governmental bodies or contractors, in addition to the current owner, who have "rights" to the property you wish to purchase.
Title Insurance protects you against these past claims and title faults. It assures you that the home that you are purchasing is safely yours. You pay the premium for title insurance only once, and it protects you for as long as you and your heirs remain in ownership. Your title insurance policy is your shield of protection and will defend your ownership against loss.
As your title company, Southwest Title will perform a title search and uncover any unpaid taxes, mortgages, judgments against current and previous owners, easements and other court actions or recorded documents which can affect the title of the property. This is the first benefit you receive when title insurance is ordered.
If a claim is made against your title as covered by your policy, we protect you by, defending your title, in court if necessary, at our expense or we will bear the cost of settling the claim, if it proves to be valid, in order to perfect your title and keep you in possession of the property. Your original premium amount is your only cost as long as you own the property and you will be protected against any unexpected claim covered by your policy. If anything arises, it will be disposed of or you will be reimbursed exactly as your policy provides. There are no annual payments due in order to keep your Title Policy in effect.
