What does title insurance best protect against?

Title insurance protects lenders and buyers from financial loss due to defects in a title to a property. The most common claims filed against a title are back taxes, liens, and conflicting wills.

How important is title insurance?

An Owner’s Title Insurance Policy is your best protection against potential defects that can remain hidden despite the most thorough search of public records. A Lender’s Title Insurance Policy also exists to protect your mortgage lender’s interest.

Does a buyer really need title insurance?

Title insurance is crucial for a homebuyer because it protects both you and your lender from the possibility that your seller doesn’t—or previous sellers didn’t—have free and clear ownership of the house and property and, therefore, can’t rightfully transfer full ownership to you.

For what is a personal representative deed used?

Personal representative’s deeds are used to transfer real property from both testate (with a will) and intestate (without a will) estates. These documents provide essential information about the specific probate estate and related property transfer in one document.

How long is title insurance good for?

As long as you own your property, the title insurance policy is valid. And your policy likely extends to your heirs in a will or to a spouse after a divorce.

What is not covered in an owner’s title insurance policy?

Things Not Covered in Your Title Policy Any defects created after the issuance of the policy, or defects that you create. Issues arising as the result of failing to pay your mortgage. Issues arising as the result of failing to obey the law or certain covenants. Specific taxes and assessments.

Should I buy owner’s title insurance for new construction?

Construction of a new home has the potential exposure to unique title pitfalls that may impact the lender and owner. Since your lender wants to be sure the property has clear title, they will require that a Loan Policy of Title Insurance be purchased.

Who should be your personal representative in a will?

Whoever you ask to serve as an executor of your estate, trustee of your trust, guardian of your kids or your power of attorney must be trustworthy. The law imposes an obligation of responsibility on the person you choose.

What is title insurance and how does it work?

Title insurance protects mortgage lenders and homebuyers against defects or problems with a title when there is a transfer of property ownership. If a title dispute arises during or after a sale, the title insurance company may be responsible for paying specified legal damages, depending on the policy.

What is a personal representative’s deed?

In the deed, the Personal Representative (“PR”) of the estate transfers the deceased owner’s interest to either a third-party buyer or an estate beneficiary. Does a Personal Representative’s Deed Require a Probate Administration?

What is the purpose of a title insurance policy?

Purpose. The purpose of title insurance is to protect a person or other legal entity against losses that arise when a lien or encumbrance is discovered after a transfer of title occurs. In the absence of a title search associated with a quitclaim deed, no title insurance company will extend this type of protection to the property owner.

Can a title company prepare a personal representative deed in Colorado?

The vast majority of title companies in Colorado will not prepare Personal Representative’s deeds and instead require that the deed be prepared by a licensed Colorado attorney. Our law firm regularly prepares PR deeds for estates, whether or not we represent the PR during the course of the full estate administration.

What happens if there is no title insurance on a quitclaim deed?

Warning. In the absence of title insurance–which is not available for a quitclaim deed–the person receiving the quitclaim deed has no legal recourse because the deed itself states that only the interest of the grantor, if any interest exists, is conveyed.