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