- WHAT IS THE NECESSITY OF HIRING A LAWYER AND THE INSPECTION OF THE TITLE?
The title inspection is the revision of the title in the public registry, which may be based on an excerpt from the background of the title or electronic records.
Your attorney examines the information applicable to the title to determine who owns the property, what defects or claims weigh on the ownership, and what actions are necessary to guarantee a sufficient title.
The title inspection may seem like a simple procedure, but it is not. It requires the interpretation of numerous deeds, mortgages, wills and other testamentary documents, judicial opinions, and other documents. It requires a consideration of the time sequence of the transactions, the facts that affect the title, and the application of the laws and judicial decisions to the different situations revealed in the title.
The inspection of title requires a complete knowledge of many areas of the law, and also when said laws entered into force or were amended or repealed. The inspection of the title may include the evaluation of several problems, including but not limited to the validity of divorces, the effectiveness of foreclosures, the extent of restrictions, the presence of federal and state withholding rights, and the effect of old claims against the property, documents casting clouds on title.
- WHAT IS A TITLE INSURANCE?
It is an insurance policy that protects the insured from any loss resulting from defects in the title of the property.
- WHY DO YOU NEED A TITLE INSURANCE?
The advantages of having a title insurance are paramount to protect your property. Your attorney, for a single payment at the time of the purchase of your property, can reinforce the inspection of the title through the issuance of a title insurance policy in your favor. In this policy, the title insurance company makes a contract with you, the insured person designated in the policy, to protect your title against financial losses, unknown interests such as encumbrances or lawsuits, or hidden risks. These hidden risks or defects, are claims that may appear even after the purchase is made. If any claim should occur, the title insurance company will defend your title in court if necessary and the insurance will cover the costs of keeping you in possession of your property. Hidden risks could be fraudulent documents, confusion due to similar names, or an error in public records
Another type of policy, is the title insurance of the mortgagee or lender Said policy protects only the owner of the mortgage and not the owner of the property. You should not desist from obtaining property title insurance because the lender has its own mortgage title insurance policy. In fact, obtaining both the property and the mortgagee policies at the same time is not much more expensive than obtaining only one of them.
The lawyer who represents you can explain to you what is the scope of the protection granted by your owner policy more thoroughly. The protection provided by this coverage continues in effect until after you sell the property, so you must keep the policy indefinitely.