The Denman Land Title Company-Frequently Asked Questions

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Frequently Asked Questions

Here are some frequently asked questions we get concerning Title Insurance. Click on a question for more information.

What is Title Insurance?
Why Get Title Insurance?
What About Hidden Risks?
Two Kinds of Title Policies?
What does Title Insurance Cost?

What is Title Insurance?
Title Insurance is a contract to indemnify against losses arising through defects in title to real estate. As a rule a title company will not insure a bad title any more than a fire insurance company will issue a policy on a burning building. However, title companies can sometimes overcome some technical objections that might be raised by a title examination. If the title is insurable, the company guarantees against loss due to any defects in title not specifically set forth in the policy, and to pay all expenses in defense of any lawsuit attacking the title as insured.

Why Get Title Insurance?
When you buy a typewriter, a television set or a thoroughbred horse, you have no need to know whether the former owner is married, single or divorced. You are not interested in whether or not he has paid his taxes or if there are lawsuits or judgments against him. But when you buy a home, it is necessary to have all that information and a great deal more. Whenever you consider the purchase of real estate you should be aware that there may be others - in addition to the owner - who could have "rights" in the property you are acquiring. There may be a work contractor, governmental agency, or any number of individuals who have perfectly proper claims against the property. "But I have a deed," many people say, "isn't that all I need?' No. A deed is no proof that the seller actually is the owner. Nor does it contain information regarding the rights others might have in the property. "Can't I find out about their rights from the public records?" Yes, most of them. A careful investigation of all matters of record by competent individuals can disclose items such as unpaid taxes, mortgages, easements, restrictions, etc. However, all of the necessary information is not contained in a single book, in a given office, or even in the same city. Add to this possible errors in indexing, improper searching, errors in examination...in other words, the human element. Besides, what is not in the public records is often what causes title trouble!

What About Hidden Risks?
There may be defects in a title which an examination may not disclose. A title policy protects against all these hidden risks and more.

- Birth or adoption of children after date of will.
- Deeds by minors.
- Deeds by persons supposedly single but secretly married.
- Deeds by persons of unsound mind.
- Errors by administrators and executors.
- Falsification of records.
- Forged deeds, releases or wills.
- Fraud, duress or coercion in securing essential signatures.
- Illegal acts of trustees.
- Impersonation of the true owners by fraudulent persons.
- Liens for unpaid estate, inheritance, income or gift taxes.
- Mistakes in recording legal documents.
- Unauthorized or fraudulent acknowledgements.
- Undisclosed or missing heirs.

Two Kinds of Policies?
A mortgage company will often require a title policy for its own protection. The policy protects only the lender. To protect himself against the many possibilities of loss due to title defects, a purchaser should obtain an owners title insurance policy. The additional cost of a mortgage policy is nominal when purchased simultaneously with the owners policy.

What Does Title Insurance Cost?
The cost of an owners policy of title insurance is small when related to the value of the property. The higher the valuation of your home, the more insurance you need. To secure the actual cost of an owners policy on your home, merely give one of our representatives a call.

Denman Land Title Company * 210 N. Main, Nevada, MO 64772 * 417-667-3488