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TITLE RISKS |
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PLM Home >> Index >> Why Insure >> Title Risks |
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SECRET SPOUSES |
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A Seller may claim to be single when, in fact, he or she is secretly married in another state. Or perhaps the seller was divorced in a community-property state where, through marriage, one spouse obtains a legal interest in property held individually by the other spouse. Whatever the reason, sometimes a present or former spouse no one knew about will show up out of the blue and file a claim against the property. |
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Who's Who at PLM
Don't know who to ask for? Just click here to find our helpful list of departments
Directions to PLM Offices
Attending a closing, and you need help with directions? Click here to view a helpful map to one of our offices.
Why PLM?
We know there's hundreds of other title companies to choose from. Click here to find out why PLM is different. |
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QUESTIONABLE COMPETENCY |
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Minors and people adjudged to be mentally incompetent cannot enter into binding contracts unless the transaction is handled by their court-appointed guardians or conservators. If the seller was a minor or was mentally incompetent when a deed was signed, the transaction may be voidable or invalid. |
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MECHANICS' LIEN FORECLOSURE |
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You bought a new home from a builder and two months after moving in, you receive a $5,865 mechanics' lien from the lumber company which the builder used. The builder claims it is a tactic being used by the lumber company, instead of giving him credit for returns. Thankfully, you have an owner's title insurance policy...and it will insure you against loss from any mechanics' lien foreclosure. The title insurer should resolve the builder/lumber-supplier conflict. |
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UNDISCLOSED HEIRS |
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When property owners die without wills, probate courts must decide whom their rightful heirs are. Court decisions may not be binding on heirs who weren't notified of the proceeding. Undiscovered heirs sometimes magically appear and claim they own the property in question. |
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OTHER FORMS OF HIDDEN RISKS
Unpaid Property Taxes
Goofs {human errors}
Forgery and Fraud
Name Confusion |
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<<Back |
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WHAT TITLE INSURANCE DOES... |
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If someone makes a claim that threatens your ownership of the home, the title insurance company protects you and the lender against loss or damage.
Most of your title insurance premium is spent on research to determine who legally owns the property that you want to buy and to find out whether there are unforeseen claims. Because title companies do a good job of eliminating title risks before folks buy property, only about 10% of the premium goes toward indemnifying homeowners against title claims after the close of escrow.
Good news! The title insurance premium that you pay at close of escrow is the one and only title insurance premium that you'll have to pay unless you refinance your mortgage.
With your Homeowner's Insurance or your Auto Insurance, you must pay annual premiums. However, since your Title Insurance policy covers issues that may have occurred in the past, which is a fixed event, you only pay one title -insurance premium as long as you keep your original mortgage.
If you refinance your mortgage, you'll have to get a new "Lender's" title insurance policy to protect the new lender from title risks that may have been recorded against your property between the time your previous policy was issued and the date of the refinance. If you refinance your loan, ask the title company whether you qualify for a refinance rate on the new title-insurance policy. Most title companies will give you a big premium reduction -- as much as 30% off their normal rates -- if your previous policy was issued within five years of the new policy's issuance date. |
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Contact PLM / About Us / Products & Services / Why Insure / Title Risks / Office Locations About Our Underwriters / 1031 Exchange Services / Agent Programs / Construction Escrows Forms & Documents / Referrals / News & Articles / PLM Photo Album / Other Links |
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