| The National Association of Realtors projects | | | | contract. |
| that 6.4 million resale home sales will take | | | | |
| place this year. If you are one of those | | | | Insuring a home's title begins with a search |
| homebuyers, you're keenly aware that this | | | | of public land records. The title agent, or |
| will likely be your largest single | | | | attorney working on behalf of the title |
| investment. | | | | underwriter, examines documents, such as |
| | | | deeds, wills or trusts, to determine whether |
| Many will purchase homeowner's insurance to | | | | the property is insurable. |
| guard against forces such as fire, theft or | | | | |
| wind damage. But what about other, hidden | | | | When title problems are found, they are |
| hazards that may threaten their financial | | | | corrected, whenever possible, to avoid future |
| investment? | | | | claims. According to a recent survey by the |
| | | | American Land Title Association (ALTA), title |
| Unlike homeowner's insurance, which focuses | | | | problems consistently arise in 36 percent, or |
| on future events and charges an annual | | | | more than one out of every three, real estate |
| premium, title insurance charges a one-time | | | | transactions. |
| premium and safeguards against loss from | | | | |
| hazards already existing in the title. | | | | After search and examination, title problems |
| | | | may still be hidden or missed, such as a |
| The two basic kinds of title insurance are | | | | signature forged on a deed, or an unknown |
| lender, or mortgagee, protection and owner's | | | | heir might step forward to claim ownership. |
| coverage. Most lenders require the former as | | | | In each of these cases, a title insurance |
| security for their investment. Owner's title | | | | policy will offer financial protection |
| insurance lasts as long as you, the | | | | (subject to the policy's terms and |
| policyholder, or your heirs, have an interest | | | | conditions). The title insurer defends the |
| in the insured property. | | | | title and "perfects" the title or pays valid |
| | | | claims. |
| Stewart Title Guaranty Co., a leader in real | | | | |
| estate information, advises potential | | | | With title insurance, you have financial |
| homeowners to ask their real estate | | | | protection against covered title hazards for |
| professional about owner's coverage and | | | | your most important investment. |
| confirm that it will be included in the | | | | |