Title Insurance

Why Title Insurance is Right for You

Title clearance and policy issuance across the U.S.

Americans have the future in mind when they buy a house, and they purchase homeowner’s insurance to help protect that future. But with home ownership comes the need to protect the property against the past, as well as the future.

Each successive owner brings the possibility of title challenges to the property. Title insurance protects a policyholder against challenges to rightful ownership of real property, challenges that arise from circumstances of past ownerships.

There are two primary title insurance policy forms -- a loan policy insuring a lender's interest and an owner's policy insuring an owner's interest. Lenders understand issues and problems that can affect title to real property and the value of a loan policy of title insurance. For that reason, when loaning money secured by real property, lenders customarily require a loan policy protecting their interest. The loan policy offers no protection to the property owner. Buyers have the opportunity to purchase an owner's policy protecting their interest at closing. In North Carolina, when a loan and owner's policy are purchased simultaneously at the time of property purchase, the additional cost to purchase the owner's policy is a nominal amount.

When you purchase real property, rely on Chicago Title - North Carolina to protect your interests. You’ll be insured by the leading title company in the U.S., backed by more than 160 years of successful title operations.

A Word About Real Estate

Real estate has traditionally been a family's most valuable asset. It is a form of wealth that is protected by many laws. These laws have been enacted to protect one's ownership of real estate and the improvements located on the land. The owner, the owner's family, and the owner's heirs have rights or claims in and to the property that you are buying. Those who may have an interest in or lien upon the property could be governmental bodies, contractors, lenders, judgment creditors, the Internal Revenue Service, or various other individuals or corporations. The real estate may be sold to you without the knowledge of the party having a right or claim in and to the property. In addition, you may purchase the real estate without having any knowledge of these rights or claims. In either event, these rights or claims remain attached to the title to the property that you are buying until they are extinguished.

What is Title Insurance?

What to Look for in a Title Company?

The Past Can Determine Your Future

Generally, a person thinks of insurance in terms of the payment of future loss due to the occurrence of some future event. For instance, a party obtains automobile insurance in order to pay for future loss occasioned by a future "fender bender" or for the future theft of the car. Title insurance is a unique form of insurance. It provides coverage for future claims or future losses due to title defects which are created by some past event (i.e., event prior to the acquisition of the property.) These risks are far less obvious than those protected against by automobile insurance, but can be just as devastating.

The following information will answer some commonly asked questions about title insurance.

>> Will You Get Clear Title?

It is of utmost importance that you receive clear title to the property when you purchase real estate. In order to do so, you must first be informed of any existing rights or claims that may, in the future, threaten your title and possession to the property. Title insurance provides you with this twofold protection.

>> How Do You Find Out What Claims Exist?

By statute, title insurance in North Carolina can be issued only after the title insurance company has received an opinion of title from a licensed North Carolina attorney who is not an employee or agent of the company and who “has conducted or caused to be conducted under the attorney's direct supervision a reasonable examination of the title.” (N.C. Gen. Stat. § 58-26-1). After receipt of the attorney's opinion on title, Chicago Title - North Carolina works closely with the examining attorney to determine if there are any rights or claims that may have an impact upon the title to the property. The title search may reveal the existence of recorded defects, liens or encumbrances upon the title such as unpaid taxes, unsatisfied mortgages, judgments and tax liens against the current or past owners, easements, restrictions and court actions. These recorded defects, liens and encumbrances are reported to you prior to your purchase of the property on a Commitment for title Insurance issued by Chicago Title - North Carolina. Once reported, these matters can be accepted, resolved or extinguished prior to the closing of the transaction. In addition, you are protected against any recorded defects, liens or encumbrances upon the title that are unreported to you and which are within the coverage of the particular policy issued in the transaction. This is the first benefit you receive from title insurance.

>> What About Undiscovered Claims?

The title to the property that you have purchased could be seriously threatened or lost completely by hazards which are considered "hidden risks." "Hidden Risks" are those matters, rights or claims that are not shown by the public records and, therefore, are not discoverable by a search and examination of those public records. Matters such as forgery, incompetency or incapacity of the parties, fraudulent impersonation, and unknown errors in the records are examples of "hidden risks" which could provide a basis for a claim after you have purchased the property. In order to protect you against this possibility, Chicago Title - North Carolina provides insurance coverage for such claims. This is the second benefit you receive from title insurance.

>> How Does a Title Insurance Policy Protect Against All These Claims?

If a claim is made against your insured title, Chicago Title - North Carolina protects you by: (1) Defending your title, in court if necessary, at no cost to you, and (2) Bearing the cost of settling the case, if it proves valid, in order to protect your title and maintain your possession of your property.

Title Insurance Protects Your Asset

Title insurance gives you the assurance that possible clouds on title to the property you are purchasing - which can be discovered from the public records - have been called to your attention that such defects can be corrected before you buy. Additionally, it is insurance that if any undiscovered claims covered by your policy arise out of the past to threaten your ownership of real estate, it will be disposed of, or you will be reimbursed exactly as your title insurance policy provides.

Only One Premium

Unlike other forms of insurance, the original premium is your only cost as long as you or your heirs own the property. There are no annual payments to keep your Owner's Title Insurance Policy in force.

Rely On Chicago Title - North Carolina To Protect Your Investment

Every owner, purchaser and beneficiary, whether by a deed or contract, should have an insured title. The entire investment depends upon the quality of title. If you are buying real estate mortgages, you are paying for a good title and you should see that you have one. If either fire insurance or title insurance is omitted, your security is not complete.

Our title policy protects you against unforeseen defects in title that would not be revealed by an abstract, the public records or an attorney’s opinion.

Whether this is your first home or fiftieth real estate investment, ask your realtor or broker and closing attorney to protect you and your property with a title insurance policy issued by Chicago Title - North Carolina.

Title Insurance.