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Hudkins January 3rd, 2018

The Importance of Title Insurance

When purchasing a home, you are purchasing “title” to the property.  This means that you have the “right” to occupy, use and enjoy the space.  However, your “right” to “title” may be limited by rights and claims asserted by others.  This can ultimately limit your use and enjoyment of the property and may result in a financial loss.  Title insurance protects against these types of losses.

Most insurance focuses on potential future events but Title Insurance protects against hazards and defects that already exist as well as those that may arise in the future.  The cost of title insurance is a one-time premium paid at closing.

Title insurance policies cover:

  • Defects, liens, or encumbrances other than those that have been identified in public records
  • Outstanding mortgages, judgments or tax liens against the property
  • Easements that allow construction of a road or utility line
  • Pending legal action against the property that could affect a purchase
  • Deeds, wills and trusts that contain improper wording or incorrect names
  • Incorrect notary acknowledgements
  • A forged signature on a Deed
  • An unknown heir of a previous owner who is claiming ownership in the property
  • Instruments executed under an expired or fabricated Power of Attorney
  • Mistakes in public records

Distinctions Between Standard and Enhanced Title Insurance Coverage

Enhanced Title Insurance covers losses resulting from a prior violation of covenant, condition or restriction, losses if you are unable to obtain a building permit due to an existing violation, or losses if you are required to remove an existing structure because it was either built without a proper building permit or it encroaches into an easement or setback line.

Additional Benefits of Title Insurance Coverage

Title Insurance also insures that you are the true, legally recognized owner of the property, you can sell your home without objection due to a defect in the title, and that you have a legal right to access your property from a public street or private road.  Title insurance offers financial protection against these and other hazards.  Title Insurance pays all costs, including attorneys’ fees, associated with defending an attack on title, and will either perfect the title or pay valid claims.

Lender and Owner Title Insurance Policies

Most mortgage Lenders require Buyers to purchase a Lender’s Title Policy to protect the Lender’s financial interest in the property and to insure the validity of its mortgage as a lien on the property.  The Lender policy does not protect the homeowner.  A home owner is only protected if an Owner’s Title Policy is purchased.

Hudkins Law offers title insurance through the following carriers:

Stewart Title Guaranty                                 https://www.stewart.com/en.html
First American Title                                      http://www.firstam.com/
Old Republic Title                                         http://www.oldrepublictitle.com/newnational/Index.asp
CATIC                                                             https://catic.com/

About Hudkins Law

Hudkins Law was founded in 2006 by Jacqueline M. Hudkins.  The firm provides title and settlement services for residential and commercial real estate transactions.  Each real estate transaction is managed by a team of Attorneys and Paralegals to guarantee continuous coverage throughout the entire closing process and combines the expertise of Real Estate, Title, Trust, Estate Planning and Corporate Attorneys.  The firm employs nine Attorneys and ten paralegals and maintains offices in Windham NH, Concord NH, Hampton, NH, New London, NH, Keene, NH, Norwich VT, & Andover, MA.