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Why you need title insurance

Posted on June 8, 2017

When you plan to purchase real estate in Missouri, you want to know that no legal problems will arise that call your ownership into question. If there is a title defect, this is exactly what you may be facing. We at TdD Attorneys at Law LLC are familiar with the various issues that you might encounter, and the role of title insurance in protecting your rights.

The American Bar Association explains that a title company should do a thorough search of public records to ensure that there are no title defects. However, there are instances where one could remain hidden until it is time for you to sell the property. A forged document, a bad title examination or other defects could cause significant financial losses for you. A title insurance policy covers these, as well as court costs if you must file a claim.

A title commitment describes all the terms of the policy, so it is essential for you to examine this document before closing. There are typically exceptions to coverage such as utility system improvement easements or statutory property taxes, and you may want to negotiate these or other conditions. The commitment also includes the following:

  • A legal description and identification of the real estate

  • The requirements that have to be satisfied before the company will issue the policy

  • Names of those who will be insured, and of the current owners

  • The type of policy

For more information about title defects, claims and insurance, you can visit our web page.