How Real Estate Title Insurance Protects You
One of the most important aspects of protecting a real estate investment is making sure that title to the property is in proper order. The word “title” refers to a person’s ownership interest in their property. By purchasing title insurance, homeowners are protecting the ownership of their property. A title guaranty policy protects ownership of the property by guarding against unknown and hidden risks that may cause you loss or affect your title.
Covered title risks may include the following:
- Invalid documents executed under non-existent ownership
- False assumptions of identity concerning the legitimate property owner
- Liens and financial burdens charged to the previous property owner
- Non-registered property easements or encumbrances
- Hidden heirs of previous transmission of ownership
A title guaranty or title insurance provides a thorough investigation of the title prior to issuance of the policy. It will provide the proper defense against third-party claims on a guaranteed title, and in the case of potential loss of valid claims, it will provide indemnity payment up to the value of the guaranty.
A title insurance policy or title guaranty is purchased for a one-time fee and, once acquired, protects the beneficiary as long as the beneficiary has an interest in the property. A title guaranty is a contract of indemnity that protects the property rights transmitted to a new owner or lender, in case a mortgage is involved, and indemnifies the beneficiary against damage or loss arising from a defect in the title of the real estate property.
A professional title insurance company with experience in Mexico, such as Stewart Title Riviera Maya, can help craft the guarantees to deliver market driven title protections, addressing pertinent concerns of legal matters in local markets to protect property investors. Feel free to contact us for a free consultation at RivieraMaya@stla.net, or call us at (984)879-4387/88.