We represent various real estate companies and title insurance firms throughout the State of Ohio, Commonwealth of Kentucky and State of Indiana. We investigate and resolve a wide range of real estate matters including, but not limited to, title agent defalcations, equitable subrogation, priority disputes, fraud, declaratory judgment actions, bankruptcy, and any related issues. Due to our vast experience in handling real estate disputes and defalcations, we understand and appreciate the problems that arise with real estate and title insurance claims.
Title Insurance Claims Defense
Title Insurance Claims Defense – Questions/Answers
- 1: Do I need to buy title insurance when I buy a home?
Title insurance is, strictly speaking, optional. However, more than 80% of U.S. homebuyers make the wise decision to buy title insurance when they purchase a home. In fact, real estate professionals in most major Ohio cities assume that their clients will purchase title insurance and include the cost for it on a settlement statement.
- 2: What types of things are covered under title insurance?
Title insurance protects homebuyers against hidden title defects, or problems relating to a person’s legal ownership of his property. Prior to a closing, a title company performs a thorough check throughout the public records to ensure that there are not any glaring deficiencies in a seller’s claim of ownership. However, despite how careful title professionals are at reviewing the public records, certain problems can go undetected. These problems can lead to disaster for new homeowners who might one day face a claim of ownership coming from a previous owner’s creditor — or even a previous owner’s heir.
- 3: My bank is already making me buy title insurance, why would I buy an owner’s policy?
There are actually two types of title insurance policies, but only one of them protects a new homebuyer. Banks often require new homebuyers to purchase a “lender’s” title insurance policy, which protects the bank’s mortgage interest in the property. But only an “owner’s” title insurance policy will protect a new homebuyer from a potential title defect. Although your bank might require you to purchase a lender’s policy to protect its own interest, your own interest will not be protected without an owner’s policy. Buying an owner’s policy of title insurance is seen as so important that real estate professionals may even have a legal duty to recommend it to their clients.
Contact Daniel P. Randolph, Esq. at drandolph@ritter-randolph.com or Donald B. Hordes, Esq. at dhordes@ritter-randolph.com for advice and assistance with any title insurance issue.