Mike and I would like to buy a house before we are 30 years old, but that means a crash course in house-hunting, mortgages, and title insurance. I know that a title proves ownership and that the contractors, lendors, the IRS and others can place liens on that title should you not fulfill contractual obligations, but I did not know that title companies offer insurance to protect against liens and help keep your title clean and protect against:

• False impersonation of the true owner of the property
• Forged deed, releases or wills, Instruments executed under invalid or expired power of attorney;
• Undisclosed or missing heirs; Mistakes in recording legal documents
• Misinterpretations of wills Deeds by persons of unsound mind
• Deeds by minors
• Deeds by persons supposedly single, but in fact married
• Fraud
• Liens for unpaid estate, inheritance, income or gift taxes

Before you buy a piece of real estate, your title insurance company will perform a search of public records to make sure that the title is clear of any claims of liens. If the title search reveals any claims such as unpaid taxes or judgments, they can be accepted, resolved, or extinguished before closing. Hidden claims that are not revealed during the due diligence, including impersonation, errors, and forgery are also covered by title insurance, giving you piece of mind that all claims, current and future, will be handled appropriately.

Title insurance protects your assets by having a giving you a recourses to defend your title in court and maintain possession of your property should a claim surface. All claims are settled before you purchase your property, so you know that you are starting with a clean title, and only one premium payment for the duration of the ownership is required to keep the policy intact and cover court costs and any insured losses.