The purchase of a home is probably the single largest investment you'll make in your lifetime. It is only prudent that you want to safeguard your rights and investment. Title insurance assures that your rights and interests to the property are as expected, that the transfer of ownership is smoothly completed and that you receive protection from future claims against the property. It is the most effective, most widely accepted and least expensive method to protect your ownership rights.
Because land endures over generations, many people may develop rights and claims to a particular property. The current owner's rights - which often involve family and heirs - may be obscure. There may be other parties (such as government agencies, public utilities, lenders or private contractors) who have liens upon or other rights to the property. These interests can limit the "title" of any buyer.
Before your real estate transaction closes, our title department performs an extensive search of all recorded documents related to the property. These records are then examined by experienced Title Officers in order to determine their effect upon the current status of ownership. The results of this examination are used to produce a ‘Preliminary Title Report’, which is issued to you or your agents for review. This thorough examination and Preliminary Title Report generally allows any pending title problems to be identified and cleared prior to your purchase of the property.
If title insurance companies work to eliminate risks and prevent losses caused by defects in the title before the closing, why do you need a title insurance policy ? Because even after the most careful research, some title flaws may go undetected. Among the more common flaws to title which are not of record are forgery, invalid court proceedings, mistaken legal interpretations, defective deeds, confusion due to similarity of names, previously unrecognized rights of spouses and undisclosed heirs. These problems may surface at any time in the future.
Protection against these flaws and other claims is provided by the title insurance policy which is issued after your transaction is complete. Two types of policies are routinely issued at this time - an "owners policy" which covers you, the homebuyer for the full amount you paid for the property; and a “lenders policy” which covers the lending institution over the life of the loan. Unlike other forms of insurance, your title insurance policy only requires payment of a moderate one-time premium and protects you and your heirs for as long as you own the property.
Each title insurance policy is a contract of "indemnity". The title policy assumes responsibility for the legal defense of your title for any defect covered under the policy's terms, and to reimburse you for actual financial loss up to the policy limits.
Ask your Equity Title of Nevada representative about the various forms of title insurance which are available for your particular transaction in order to ensure that you receive the best title insurance protection possible.