Why do I need Title Insurance?

In the old days when a person purchased property they had to rely on the integrity of the seller. If the seller misrepresented ownership or encumbrances affecting the property, the buyer had to sue the seller for damages. If the seller was uncollectable or had left town, the buyer was out of luck. If the person examining title made a mistake and was uncollectable or had left town, the buyer was again out of luck. To solve this problem, title insurance companies were created. Title insurance companies and their agents, search property records and issue title policies insuring the buyer or lender. If it turns out that there was a covered defect in the title, the insurance company steps in to protect the buyer. With this protection, buyers and lenders may enter into real estate transactions with confidence their interests are protected.

Information provided by Corporate Title, www.corporatetitle.com