Prairie Title is your hometown title agency, serving Oak Park, River Forest, Forest Park and surrounding communities for more than 30 years. In this column, Prairie Title CEO Frank Pellegrini tackles several of the questions home buyers and sellers ask most frequently about title insurance.
What is title?
Frank: Title is your right to own or use your property. Title also establishes any limitations on those rights.
What is a title search?
Frank: A title search is an early step in the home buying process to uncover issues that could limit your rights to the property. If a title issue is discovered, most often your title professional will take care of it without you even knowing. After the title search is complete and problems are taken care of, the title company can provide a title insurance policy.
What is title insurance?
Frank: If you’re buying a home, title insurance is a policy that protects your investment and property rights.
There are two different types of title insurance: an owner’s policy and a lender’s policy.
A lender commonly requires a lender’s policy which protects the lender’s financial interests. The buyer pays for this policy.
Owner’s title insurance should be obtained at time of purchase and is typically paid for by the seller in Illinois. This policy protects your investment in your property from legal claims regarding ownership of your property for as long as you own the property. The owner’s policy also covers potential legal fees and court costs for settling claims covered by your policy. The premium is paid only once.
What does owner’s title insurance cover?
Frank: Sometimes undiscoverable defects can come up after the title search. Under an owner’s title insurance policy, you are protected against defects in the title.
Covered Title issues include:
• Outstanding mortgages, judgments, or unpaid taxes
• Pending legal action against the property that could affect you
• Unknown heir of a previous owner who is claiming ownership of the property
• Fraud
• Forgery
• Clerical errors: inconsistent paperwork or faulty historical records
How long am I covered?
Frank: Your owner’s insurance policy lasts for as long as you or your heirs own your property. Your life will change over time, but your peace of mind never will.
Where can I get more information?
Frank: Visit prairietitle.com, come see us at our office on North Avenue, email us at info@prairietitle.com, or call us anytime at 708-386-7900.The American Land Title Association also has all the information you need. Visit www.homeclosing101.org to learn more about title insurance and the home closing process.
Prairie Title is a proud member of the American Land Title Association.