Title insurance = Low cost peace of mind

With mounting foreclosures and a down economy, conditions are ripe for title claims to rise as they usually do during a cloudy economic climate. If you never thought too much about title insurance, now is a good time especially if you are looking into making a real estate purchase. And think about it this way: title insurance is a low-cost insurance policy that gives you peace of mind throughout your ownership of the property. While some potential purchasers worry about the already high expense of closing costs, title insurance is the one closing cost that gives you a return on your investment. If a problem arises with your title after the closing, you simply file a claim with your title insurance company and they take care of it on your behalf, at no cost to you, so long it is an insurable event. It will be hard to find an attorney to fight the title defect at a rate lower than the cost of your title insurance policy. What Does Title Insurance Protect You From? Before you arrive at the closing, the title insurance company has already searched the county clerk's office for matters affecting the title to the real estate you are purchasing. If any issues arise, the title professional takes care of these issues and remedies any problems that could prevent the seller from passing on clear title to you as the purchaser. Even the best title search, performed by the most highly skilled and trained professionals cannot guarantee error free titles. Therefore, the Owner's Title Insurance Policy protects you as the new owner against such things as: * A forged signature on the deed, which would mean no transfer of ownership to you; * Mistakes in the public records; * Deeds by persons of unsound mind or executed by minors; or * Fraud. While we are already operating in a risky business environment, title insurance will afford you additional protection at a fraction of the cost of going at it alone should the need to defend a title claim arise. Graig Zappia, Esq., is a partner with Tully Rinckey PLLC, Albany, N.Y.