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Problems With Title
To Your House Can
Limit The Use Of
The Property
To Your House Can
Limit The Use Of
The Property
There is usually some confusion about title insurance. If you are purchasing a home, whether
it is a first time buy, or a second or third, always insist on title insurance, and be sure to go
with a reputable title insurance company.
The loan policy, which is title insurance, is for the lender. This protects the lender. It does not
protect the home owner, the buyer. Prior to the creation of title insurance, buyers in real
estate transactions were responsible for ensuring the validity of the land title held by the
seller. If the title were later deemed invalid or found to be fraudulent, the buyer lost all his
investment. This didn't seem fair, thus title insurance companies came into existence.
Oneida Indians' 40 year old land claim.
The USA has been extremely lucky to have avoided the ugly land claims problems. In August
2010 the Oneida Indians' 40 year land claim was dismissed. In question was a parcel of
250,000 acres of land that the Oneida Nation claimed was illegally taken from them by the
state of New York. At one point the Oneida Indians owned over 6 million acres in upstate New
York. They sold most of the land to the state. In this case, which was first filed in 1970, the
Oneida Indians were seeking the return of the land and damages of half a billion dollars. The
court ruled that it would be too disruptive to the community to return the land. If the decision
stands thousands of homeowners can breath easy. At one point they were facing eviction.
Chances of an appeal to the Supreme Court are slim. The high court hears about 1% of the
cases presented, and the Oneida Indians are wealthy. Their Turning Stone Resort and
Casino generates over $500 million a year.
This is where title insurance comes in. With a title insurance policy, the homeowners would be
protected. The title insurance companies would have to pay the claims to the Oneida Indians
Nation. I believe that title insurance is required by law in most states. So you have a product
that few people understand how it works, the premiums vary greatly and I don't imagine there
are too many claims. The profits are enormous and the risk is low.
The big two companies are First American Corporation and Fidelity National Financial.
Between them, they account for more than 50% of the market. In 2008 a large player,
LandAmerica, went bankrupt, and it's assets were purchased by Fidelity.
Owner's title insurance policy.
You need to purchase an owner's title insurance policy, often referred to as the "owner's
policy". Occasionally, title problems arise that could not be found in the public records or are
inadvertently missed in the title search process. To help protect you in these situations, it is
recommended that you obtain an Owner's Policy of Title Insurance to insure you against the
most unforeseen problems. The policy is usually issued in the amount of the house purchase
price. It is purchased for a one-time fee at closing and lasts for as long as you or your heirs
have an interest in the property. The cost of the policy varies from company to company.
Therefore you should ask for quotes from at least two title insurance companies, and
remember to ask about discounts. Only an Owner's Policy will fully protect the house buyer
should a covered title problem arise with the title that was not found during the title search.
it is a first time buy, or a second or third, always insist on title insurance, and be sure to go
with a reputable title insurance company.
The loan policy, which is title insurance, is for the lender. This protects the lender. It does not
protect the home owner, the buyer. Prior to the creation of title insurance, buyers in real
estate transactions were responsible for ensuring the validity of the land title held by the
seller. If the title were later deemed invalid or found to be fraudulent, the buyer lost all his
investment. This didn't seem fair, thus title insurance companies came into existence.
Oneida Indians' 40 year old land claim.
The USA has been extremely lucky to have avoided the ugly land claims problems. In August
2010 the Oneida Indians' 40 year land claim was dismissed. In question was a parcel of
250,000 acres of land that the Oneida Nation claimed was illegally taken from them by the
state of New York. At one point the Oneida Indians owned over 6 million acres in upstate New
York. They sold most of the land to the state. In this case, which was first filed in 1970, the
Oneida Indians were seeking the return of the land and damages of half a billion dollars. The
court ruled that it would be too disruptive to the community to return the land. If the decision
stands thousands of homeowners can breath easy. At one point they were facing eviction.
Chances of an appeal to the Supreme Court are slim. The high court hears about 1% of the
cases presented, and the Oneida Indians are wealthy. Their Turning Stone Resort and
Casino generates over $500 million a year.
This is where title insurance comes in. With a title insurance policy, the homeowners would be
protected. The title insurance companies would have to pay the claims to the Oneida Indians
Nation. I believe that title insurance is required by law in most states. So you have a product
that few people understand how it works, the premiums vary greatly and I don't imagine there
are too many claims. The profits are enormous and the risk is low.
The big two companies are First American Corporation and Fidelity National Financial.
Between them, they account for more than 50% of the market. In 2008 a large player,
LandAmerica, went bankrupt, and it's assets were purchased by Fidelity.
Owner's title insurance policy.
You need to purchase an owner's title insurance policy, often referred to as the "owner's
policy". Occasionally, title problems arise that could not be found in the public records or are
inadvertently missed in the title search process. To help protect you in these situations, it is
recommended that you obtain an Owner's Policy of Title Insurance to insure you against the
most unforeseen problems. The policy is usually issued in the amount of the house purchase
price. It is purchased for a one-time fee at closing and lasts for as long as you or your heirs
have an interest in the property. The cost of the policy varies from company to company.
Therefore you should ask for quotes from at least two title insurance companies, and
remember to ask about discounts. Only an Owner's Policy will fully protect the house buyer
should a covered title problem arise with the title that was not found during the title search.
Some Big Title
Problems You
Could Face
Without An
Owner's Policy
Problems You
Could Face
Without An
Owner's Policy
Fraud and Forgery.
Professional criminals would spend months
trying to create the perfect crime. When it
comes to real estate, they would spend
countless hours at the courts looking over
records of real estate sales transactions.
They are looking for deals where the owner is
living in another state and the property is
sitting vacant. They would then create a fake
deed and have it notarized. Next, they would
list the property for sale.
Fraud and forgery are examples of hidden
title hazards that can remain undetected until
after a closing despite the most careful
precautions. An Owner’s Policy protects you
financially through negotiation by the insurer
with third-parties, payment for defending
against an attack on the title as insured, and
payment of valid claims.
Heirs.
A son or daughter from a previous marriage
can suddenly appear and claim a portion of a
house. An Owner's Policy protects the current
home buyers from claims by missing or
forgotten heirs.
Conflicting Wills.
Special attention has to be taken with wills.
Sometimes a will is not registered with the
courts. When a parent dies and the house
passes to another relative, and the relative
sells the house, a claim can still arise. The
relative that is named in the will can appear
and produce a will and demand money from
the home owners. An Owner's Policy offers
protection.
Professional criminals would spend months
trying to create the perfect crime. When it
comes to real estate, they would spend
countless hours at the courts looking over
records of real estate sales transactions.
They are looking for deals where the owner is
living in another state and the property is
sitting vacant. They would then create a fake
deed and have it notarized. Next, they would
list the property for sale.
Fraud and forgery are examples of hidden
title hazards that can remain undetected until
after a closing despite the most careful
precautions. An Owner’s Policy protects you
financially through negotiation by the insurer
with third-parties, payment for defending
against an attack on the title as insured, and
payment of valid claims.
Heirs.
A son or daughter from a previous marriage
can suddenly appear and claim a portion of a
house. An Owner's Policy protects the current
home buyers from claims by missing or
forgotten heirs.
Conflicting Wills.
Special attention has to be taken with wills.
Sometimes a will is not registered with the
courts. When a parent dies and the house
passes to another relative, and the relative
sells the house, a claim can still arise. The
relative that is named in the will can appear
and produce a will and demand money from
the home owners. An Owner's Policy offers
protection.
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