Why Title Insurance
|What is title insurance?
insurance policy contains a statement of the condition of ownership of real
property. A title policy indemnifies you against certain loss or damage that
you might incur relative to title defects on your property. In the event of a
lawsuit challenging your ownership interest, the title insurance company
provides a legal defense for the policyholder and, if the suit is lost, pays
all valid claims or losses up to the face amount of the policy. .
Why do I
need title insurance?
A forgery 50 years ago; a deed executed
under duress; a long lost heir; an error by the clerk in the county recorder's
office; a misapplied tax payment: these are but a few of the hidden "title
defects" that could cause you to lose the single largest investment in your
lifetime, your home. And even if you don't lose your property altogether, title
problems could make it difficult or impossible for you to sell your home in the
You don't want an event that occurred before you bought the
property to deprive you of your ownership or your right to use or dispose of
the property. And you don't want to have to pay the ruinous costs of defending
your property rights in court. A title insurance policy from a nationally
known, financially sound title insurance company is your best protection
against defects that could remain hidden despite the most thorough search of
the public land records.
When do I purchase title
For a one-time premium paid at the time of your
settlement, you can receive a title insurance policy to protect against title
defects or claims made against title. Your policy will protect you even after
you sell the property or pay off any loan. The cost of title insurance will be
reflected at settlement as part of your total closing costs.
addition to your Owner's title insurance policy, your lender will almost always
require you to purchase a title insurance policy to insure their interest in
the property up to the face amount of their loan. The Lender's policy is only
applicable to the specific transaction, and it provides coverage for the
mortgage lien and it protects against errors made in the title search connected
with that transaction, as well as any pre-existing clouds on title. Therefore,
each new lender will want a lender's policy that is specific to their
transaction, whether for a purchase or a refinance.
Why should I purchase
title insurance from MBH?
At MBH, we strive to remedy all known
title defects prior to closing. You can rely on our experienced staff to
isolate and correct issues that would often go unnoticed or overlooked by
others. This is why we offer our customers enhanced coverage policies as our
standard form of title insurance, the
We are also a licensed agent for some of the
nation's largest and most secure title insurance underwriters. You can rest
assured that if you need to seek protection from your title insurer, they have
the financial ability to defend your claim, and they have the professional
reputation for protecting their policy holders.