Could Your House be Taken from Under You?

Buying a home is one of the largest investments that most people ever take on. It's an exciting time that requires a lot of planning, documentation, and research before the closing date. Once you've closed on your new home, it is officially yours! ... Or is it?

If there was an issue filing the title during the closing process, then it could be possible that the property's title doesn't actually belong to you. That is where the best title company at the Lake of the Ozarks comes in - Arrowhead Title! Purchasing title insurance may have helped prevent this issue from ever happening in the first place. Keep reading to learn how!



The Title Search

One of the first things we do to determine whether a title is clear or not is to complete a title search. A title search can verify whether or not the seller is the true owner of the property. It will also reveal if the title is clouded, has mortgage claims, title claims, liens, judgments, or anything else outstanding on the title. Other issues that might affect your ownership of the property's title can be restrictions, easements, and leases which are also items that we carefully look for during the title search.


How a Title Search Works

Each title search company or attorney that performs a title search may review different documents.  Generally, a title search company or an attorney will review:
  • All public and court records
  • The chain of title
  • Property tax records
  • Legal descriptions
  • Liens or other claims
  • Easements
Once Arrowhead Title has conducted the title search, and before we issue title insurance, we'll prepare something called an "abstract of title". This is a short summary of what was found during the title search (basically, this is the history of the ownership of the property). Then, a title opinion letter will be issued, which is a legal document that says whether or not the title is valid.



Hidden Title Problems

While Arrowhead Title always works with the utmost integrity and accuracy, there may be some things that cannot be found in a title search. Some issues that are commonly not found during a title search include...
  • Fraud
  • Forgeries
  • Mental incompetence issues
  • Clerical errors
  • Improperly probated wills
  • Confusion due to similar or identical name
If any of these issues are present on your title, it could seriously threaten your ownership of the property. You may even lose your home. Title insurance can help prevent these issues from happening.


Issuing a Title Insurance Policy

Once the title to your property is confirmed as "valid", Arrowhead Title can issue a title insurance policy to you. While most lenders will require this policy, it is up to the buyer whether or not they want to purchase an Owner's policy. The Lender's policy, however, does not cover the homeowner. It only covers the Lender in the event of a financial loss. Buyers should keep in mind that title insurance is there to help limit the risk of mistakes and discrepancies like the ones we mentioned earlier. If a title problem comes up later, then the title insurance company can pay any damages to the title holder or even correct the problem. What a relief!


Best Title Company at the Lake

Buying a home at the Lake of the Ozarks is a fun endeavor! If you are buying a home in the area, be sure to contact Arrowhead Title for a professional company you can trust with your title search and title insurance policy. We are here for you!


The Lake of the Ozarks' Most Trusted Title Company
Where Accuracy Matters!


750 Bagnell Dam Blvd Suite B
Lake Ozark, MO 65049

Comments

Popular posts from this blog

Title Commitment vs Title Report

What Happens If You Don't Pay Your Personal Property Tax?

Why Would I Need a Title Search vs Owners and Encumbrance