DO I NEED TITLE INSURANCE?

When you buy a home, you receive a title to the property, meaning you are now the full
legal owner of that property - including all of its problems. Title insurance for real estate
provides protection against loss if a covered defect is found in the title to real property.  
You can purchase it for a one-time premium, paid in most cases at closing.  Title insurance
usually covers four types of risks: errors, liens, ownership claims, and invalid deeds. If a
claim is made against your property, the title insurance company will negotiate with the
other party to settle the claim, defend you in court if necessary, pay any incurred legal
costs, and satisfy any covered claims. Having title insurance can save you time,
money, even your home.  Many parcels have covenants or restrictions that run with the
land. If there is a reversionary clause in the document which established the covenant or
restriction, then a violation could cause ownership of the property to revert to a prior
owner. Additionally, if a lien (such as a tax lien, mortgage, or mechanic's lien) is attached
to the property and has not been satisfied, then YOU are purchasing the property subject
to the lien. You could actually pay for the property, and then lose it in a forced sale to
satisfy the lien.  

Typical hazard insurance covers a loss from the date of the policy forward in time.   In
other words, the insurance company will not pay for a loss that occurred prior to the
issuance of the policy. There is no need to buy fire insurance for a home that has already
burned.  However, title insurance covers actions which have occurred PRIOR to the
issuance of the policy. Many situations occur, particularly in rural communities, which
affect the title to the parcel.

What if all of the heirs of a deceased property owner did not sign a prior deed?  What if
the parcel was purchased at a tax sale? What if a lender failed to release a mortgage?
What if . . . . . ?

The job of Pulaski County Title & Abstract, Inc., through its sister Johnson County Abstract
Company, agent of Attorneys' Guaranty Title Fund, is to insure property owners against
the inherent risks associated with the purchase of real estate.  A one-time fee guarantees
your protection.  Pulaski County Title, combined with the former Pulaski County Abstract
Company, has been in business for over 50 years. In most cases, the title search is less
expensive and more complete than those of competitors because the title company is in
possession of thousands of abstracts of property located within Pulaski County.  Do you
need title insurance?  Well, do you need fire insurance?  If your home never burns, then
possibly the answer is no.  But knowledge of a clean title provides security and peace of
mind.  Additionally, almost all lenders require title insurance in order to mortgage the land.  
Should you be less protected?  Possibly the most expensive purchase you will ever make
is that of your land.  Isn't the purchase worth insuring?
Pulaski County Title & Abstract, Inc.
(618) 748-3622