For the property owner:

Title Insurance is a compete examination of public records in regards to your property and past owners.  It covers searching from 60 years back to the current date.    This search insures you that the property will be yours and there is nobody else of record that will claim an interest in your property.  For a one time premium, New Castle Title agrees to insure you for loss suffered due to defects that existed prior to the issue date of your policy up to the amount of the policy.  Examples of coverage include; but not limited to; the following:

• Protection from financial loss due to demands charged against the title to your home, up to the cost of the title policy.

• Payment of legal costs if the title insurer has to defend your title against a covered claim

• Payment of successful claims against the title to your home covered by the policy, up to the cost of the policy

• False impersonation of the true title holder of property

• Forged documents

• Deeds by persons of unsound mind, minors, or supposedly single persons but actually married

• Invalid documents completed by an expired power of attorney

• Invalid deeds delivered after the death of the grantor

• Fraud

• Claims for unpaid estate inheritance and gift taxes against prior owners

• Undisclosed descendents of former owners.

Here are some examples of how Title Insurance can benefit the property owner.

• Example A:

Mr. Jones sells a piece of land to Mr. Smith without having title insurance.  Ten years later, Mr. Smith sells to Mr. Anderson who asks for title insurance.  The title search shows that Mr. Jones has an open mortgage loan recorded against the property, which was never paid when he sold to Mr. Smith.  Since Mr. Smith didn’t have title insurance, he must payoff the loan not belonging to him in order to give Mr. Anderson a clear title.  Title insurance would have protected Mr. Smith from having to pay Mr. Jones’ debt.

• Example B:

Mr. Johnson made a signed, recorded agreement with his neighbor, Mr. Olson, to allow him to build a garage which overlaps his property by 4 feet.  Mr. Johnson then sells his property to an out of town couple, Mr. & Mrs. Nelson, who are not aware of this agreement.  The Nelsons receive title insurance from Mr. Johnson, but the title insurance does not disclose the recorded agreement.  Two years later, the Nelsons are made aware of the property overlap agreement and this results in a significant decrease in property value from what they paid.  Consequently, since the Nelsons have title insurance, the loss they incur is covered by the title insurance.

Title Insurance for Lenders

Title Insurance helps cover the lender from any “title defects” which may arise from a search of the property.  The policy protects the lender and the lenders lien position in the event that a title defect is discovered.  The policy remains in effect for as long as the mortgage is secured by the property.  The lenders policy gives the mortgage holder coverage up to the face amount of the policy in the event a claim should ever arise.