What is title insurance and why do I need it?

Title Insurance is needed to protect possibly the most important investment you'll ever make - the investment in real estate. Without a title insurance policy, you may not be fully protected against errors not disclosed by the public records or mistakes in examination of the title of the property. As a result, you may be fully accountable for any prior liens, judgments or claims brought against your property.

Title insurance insures the existence or non-existence of rights to the property. A title search is performed, in most real estate transactions today and a title insurance policy is purchased to assure the buyer that he or she has purchased a valid title. The title company must determine insurability of the title as part of the search process. This leads to the issuance of a title policy, which insures against potential "unknown" title defects. Title insurance insures that if such an occasion arises and a claim is brought against your property, you will be defended free of charge against all covered claims and paid up to the amount of the policy to settle valid claims.

A lender goes to great lengths to minimize the risk of lending money for the purchase of real property (either land or a building and land). The lender needs assurance that the quality of the title to the property which will be pledged as security for the loan is satisfactory. The lender does this by obtaining a loan policy of title insurance.

The loan policy protects the lender against loss due to unknown title defects. The loan policy ONLY protects the lender's interest, it DOES NOT protect the the borrower.

An owner's policy can be purchased at the time the property is purchased for a nominal one-time premium. An owner's policy remains in effect as long as the insured or the insured heirs, retain an interest in the property
Owner's title insurance, issued simultaneously with a loan policy, is the best title insurance value a property owner can get.

What Title Insurance Protects Against

Title insurance is issued after a careful examination of copies of public records. But even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of professional title examiners.

Here are just a few of the most common hidden risks that can cause loss of title or create an encumbrance on title:

• False impersonation of the true owner of the property

• Forged deeds, releases or wills

• Undisclosed or missing heirs

• Instruments or missing heirs

• Mistakes in recording legal documents

• Misinterpretations of wills

• Deeds by persons of unsound mind

• Deeds by minors

• Deeds by persons supposedly single, but in fact married

• Liens for unpaid estate, inheritance, income or gift taxes

• Fraud

Title Insurance Cost

The title insurance policy premium charged by the title insurance company is regulated by the New York State Insurance Department. In that regard, the amount of the exact premium depends upon the County in which the subject property is located, the purchase price and the mortgage amount being borrowed from the lending institution for the purchase.
Other miscellaneous fees, such as municipal department searches (tax, judgment, liens, bankruptcy, etc.), recording service fees, payoff fees and escrow fees are not regulated. The miscellaneous fees that maybe incurred vary with every client.

Yankee Title Agency, Inc.

"Yankee Title" is located at 6 Century Hill Drive, Latham, New York 12110.
Yankee Title Agency, Inc. is an insurance agent of Chicago Title Insurance Company. Chicago Title Insurance Company has been in business 150 - plus years. Yankee Title as an agent of Chicago Title Insurance Company we agree with the fundamental principles upon which the Company was founded. They are outstanding customer service, untarnished reputation for integrity and a rock solid, enduring identity that is synonymous with the necessary expertise to insure your most prized asset: your home.

While, Yankee Title has assisted purchasers of real property in obtaining title searches and title insurance throughout the State of New York, its efforts are concentrated on real estate transactions in the Capital District.