THE WHO, WHAT, WHY, AND HOW OF TITLE INSURANCE
1. WHY DO I NEED TITLE INSURANCE? • To protect possibly the most important investment you’ll ever make - the invest- ment in your home. With a title insurance policy, you as owner, have an indemni- ty contract that will reimburse you for loss in the event someone asserts a claim against your property that is covered by the policy. 2. WHAT TYPES OF COVERAGE ARE THERE AND WHO GETS IT? • Owner’s Policy: Shields you from title issues due to past events. • Lender’s Policy (required if you finance): Protects your lender’s interest in the property - not yours. 3. HOW CAN THERE BE A TITLE DEFECT IF THE TITLE HAS BEEN SEARCHED? • Title insurance is issued after a careful examination of copies of the public re- cords. But even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search. 4. WHAT TITLE INSURANCE PROTECTS AGAINST: Here are some examples of what title insurance covers: • False impersonation of the true owner of the property • Forged deed, releases or wills, Instruments executed under invalid or expired power of attorney • Undisclosed or missing heirs; Mistakes in recording legal documents • Misinterpretations of wills Deeds by persons of unsound mind • Deeds by minors • Deeds by persons supposedly single, but in fact married • Fraud • Liens for unpaid estate, inheritance, income or gift taxes 5. WHO IT PROTECTS AND WHAT IT MEANS FOR YOU: • Title insurance will pay for defending against any lawsuit attacking your title as insured, and will either clear up title problems or pay the insured’s losses. For a one-time premium, an owner’s title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property. • This means peace of mind in knowing that the investment you’ve made in your home is a safe one. The statements made herein are not intended, and shall not be construed to expressly or impliedly issue or deliver any form of written guaranty, affirmation, indemnification, or certification of any fact, insurance coverage or conclusion of law.
6 | Colorado Seller Guide
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