TITLE INSURANCE PRIMER
Benefits of Title Insurance
Title insurance issued by Old Republic Title provides a broad range of
benefits to the parties involved in a real estate transaction.
To the Purchaser of Real Estate...
The purchaser of real estate needs protection against serious financial
loss due to a defect in the title to the property purchased. For a
single, one-time premium, which is a modest amount in relationship to
the value of the property, a buyer can receive the protection of a title
insurance policy - a policy that is backed by the reserves and solvency
of the Company. A title insurance policy will cover both claims arising
out of title problems that could have been discovered in the public
records, and those so-called "non-record" defects that could not be
discovered in the record, even with the most complete search.
A title insurance policy will not only protect the insured owner, but
also that person's heirs for as long as they hold title to the property,
and even after they sell by warranty deed. The Company will not only
satisfy any valid claim made against the insured's title, but it will
pay for the costs and legal expenses of defending against a title claim.
To the Lender...
The overwhelming majority of mortgage loans made in the United States
are made by persons who are acting in a fiduciary capacity - by savings
and loan associations, savings banks, and commercial banks on behalf of
their depositors, and by life insurance companies on behalf of their
policyholders. Because they are lending other people's money (other
people's savings or policyholder's funds) these lenders must be
concerned with the safety of their mortgage investments.
A policy of title insurance provides a mortgage lender with a high
degree of safety against the loss of security as a result of a title
problem. This protection remains in effect for as long as the mortgage
Old Republic Title also provides lenders with in-depth expertise on a
wide variety of title related matters to facilitate the mortgage loan
To the Seller...
An owner of real property whose interest is insured by an owner's title
insurance policy has the assurance that the title will be marketable
when selling the property. The title insurance policy protects the
seller from financial damage if the seller's title is rejected by a
prospective purchaser. Also, when the seller conveys with "warranties,"
the seller is still protected if the buyer sues because of a breach of
To the Real Estate Attorney...
Title insurance enables the real estate attorney to provide the client
with substantially greater protection than would be afforded by the
attorney's opinion alone. The attorney's opinion is generally limited to
recorded matters and the client can only recover from the attorney if
the attorney is found to be negligent. (Remember the case of Watson v. Muirhead that prompted the creation of title insurance?)
To the Real Estate Broker...
The title insurance company and the real estate agent both seek to
ensure that as many purchases as possible are closed to the satisfaction
of all the principals in the transaction. From the broker's standpoint,
the efficient and safe transfer of title will result in client
satisfaction, increased prestige, and continued business.
Apart from the security that title insurance offers, most brokers have
experienced numerous instances in which title insurance personnel have
enabled them to close transactions that otherwise would have been
delayed. By helping to avoid delays, Old Republic Title is able to
facilitate the job of the real estate broker and to minimize the
inconveniences and costs to the homebuyer.
To the Home Builder...
By providing various title insurance services and information to the
home builder, the title insurance industry can and does assist the
builder in identifying and evaluating building and use restrictions,
easements, etc., in removing title problems that may arise, and in
facilitating prompt and needed disbursement of construction funds from
the construction lender. All of these services ultimately rebound to the
benefit of the buyers of newly constructed homes.
To the Community In General...
Apart from the unique benefits title insurance offers to particular
parties interested in a real estate transaction, title insurance
companies can and do offer considerable assistance to public officials
through the use of their "title plants" - the data banks of reorganized
and indexed public records that are maintained by the Company in many
areas of the country.
Much of the information contained in title plants is not readily
available from other sources. This fund of information about the date of
recent sales, representative sale prices, ownerships, area maps, use
restrictions, surrounding properties, and a host of other matters
pertinent to proposed projects, has helped representatives from all
levels of government save countless hours and taxpayer dollars. In
addition, title plant people frequently help recording officers correct
errors they discover in public indices and records.