First time buyers often ask about owners title insurance, what it is, and whether they should buy it. Lenders title insurance is required with most mortgages, however, owners title insurance is traditionally optional. Buyers should consider the features and decide for themselves on whether the expense is worthwhile given the costs and coverage. The following are Massachusetts owners title insurance details.

Title Searches Are Not Perfect

Before closing, a title search is always performed by a title company. This determines that no other party has a right to the home (based on records on file) and that the title is available to be transferred to a new buyer. The title search is not fool proof and may not identify hidden risks in the title. Owners title insurance will protect you against title issues and the legal fees associated with protecting your rights to home.

Owners Title Insurance Coverage

Owners title insurance is a single charge at closing that will remain valid for the entire time that you retain ownership of the property. You can buy it at a later time, but it is normally less costly when bought at closing. The fee is based on the amount of the loan.

Massachusetts Owners Title Insurance Details and Coverage

Owners title insurance typical coverage includes…

  • Misrepresentation related to the execution of past title transfers.
  • Pressure on a seller or executor (of a will).
  • False impersonation by those alleging to be owners of a home.
  • Incorrect marital status of a seller.
  • Mental Incapacity of grantors.
  • Conveyance of a minor.
  • Non-delivery of critical paperwork.
  • Unsatisfied claims not mentioned inthe records.
  • Mis-indexing at Registry of Deeds.
  • Clerical glitches in recording legal documentation.
  • Delivery of deeds after the death of a seller.
  • Transfers executed under unauthorized powers of attorney.

Some policies may include…

  • undisclosed heirs.
  • Wills not properly probated.
  • Incorrect interpretation of trusts.
  • Birth of heirs after the date of a will.
  • Incorrect property surveys.
  • Inaccurate legal descriptions.
  • Confusion fomr similar names.

The above information is merely an introduction. Consult a local title company for current Massachusetts owners title insurance details and pricing, as they typically vary based on the provider.