Real Estate News from Brad Gough

What is Title Insurance?

Simply stated, a title insurance policy protects buyers in that it provides insurance that the title for a property is not subject to judgments against the seller or previous owners. Title is a bundle of rights in real property.

A title company will begin the title search process by reviewing county records and other online resources to determinine from the public record just what these rights are and who owns them.

A title search is a means of determining that the person who is selling the property really has the right to sell it, and that the buyer is getting all the rights to the property (title) that he or she is paying for.

In those transactions where title insurance is involved, the title company must determine insurability of the title as part of the search process. This leads to the issuance of a title policy, which insures the existence or non-existence of rights to the property.

The Title Company will establish a Chain of Title, which is the linkage of property ownership that connects the present owner to the original source of the title

The Title Company will also perform a Tax Search to reveal if taxes are current or whether any real estate taxes are past due and unpaid from previous years. This search will also look for the existence of any special assessments against the land and, if so, whether or not these assessments are current or past due.

The Title Company will also perform a Judgment and Name Search to determine if there are any unsatisfied judgments against the seller or previous owners which were in existence while they owned the title. A judgment is a general lien against the debtors real estate and constitutes security for any money owed under the judgment.

A judgment against a person named Smith may affect the title of a seller named Smith, depending on whether or not they are the same person. All possible variations of the name must be examined.

Rights established by judgment decrees, unpaid federal income taxes, and mechanics liens all may be prior claims on the property, ahead of the buyers or lenders rights. If a judgment is discovered that constitutes a defect in the title, it is pointed out, and the seller must then eliminate it before the title of the new buyer can be insured free and clear of that judgment.

Some common title issues are:

Errors In Public Records
Unknown Liens
Illegal Deeds
Missing Heirs
Boundary/Survey Disputes
Undiscovered Will
False Impersonation of Previous Owner

Title Insurance is a contract of indemnity that protects the owner or lender, according to the contract terms, against loss or damage from title defects. It is issued once all the stipulations on the commitment to insure are met. It serves as the protection for the owners against claims against their property rights.

I Appreciate Your Referrals

It is a common misconception that a real estate agent primarily learns of someone looking to buy or sell a home when someone simply calls an agency looking for an agent to help them. Although this can happen, it is very rare. In fact, over 80% of the referrals I receive come from past clients and past coworkers just like you. The other 15-20% of referrals comes from our national network of relocation companies and other Coldwell Banker agencies across the country.

The greatest compliment I can receive is when someone like you refers me to a friend, coworker or family member of theirs. If you, or someone you know, are looking to either buy or sell a home then I would certainly appreciate the opportunity to earn your business. Do you know of someone looking to buy or sell a home?

Click the vCard below to download my contact information to load on your phone and to share with anyone you know that would benefit from my help in buying or selling a home.

Contact Brad Gough

12401 Old Meridian Street
Carmel, In 46032


Mobile (317) 590-3571

Office (317) 844-1131