ALTA Title Insurance


When you purchase a home, you should also buy owner's title insurance. Owner's title insurance protects you against future loss resulting from current defects in your title to the property.

Before closing, the title company conducts a thorough examination of public records to uncover possible title defects. Easements, unpaid taxes or mortgages, judgments against previous owners, and other defects will be disclosed and cleared before you receive clear title to the property at your closing.

What if a problem arises after closing? If the defect is covered by your policy, your title insurance company will defend your title to the property, in court if necessary, and at their expense.

Does the standard owner's title insurance policy cover all title defects? No, a standard policy has several important exceptions. For maximum coverage, you need an owner's extended coverage policy which is also called an ALTA or plain language policy. Owner's extended coverage provides protection against several important items: unrecorded ownership rights of other parties, unrecorded easements, unrecorded liens, and unrecorded boundary discrepancies or unrecorded encroachments that an accurate survey would reveal.

The fee for title insurance is a one-time premium which is paid at closing. In some parts of the country, this premium is paid by the seller; in other areas, it is paid by the buyer. If you are obtaining a mortgage, your lender will require you to obtain lender's title insurance to protect their interest in the property.

Remember, when you purchase title insurance, ask for ALTA or owner's extended coverage. When you're ready to purchase real estate, call the number at the bottom of the page and ask for me.




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Compliments of

Gordon & June Smith
Brokers/Owners
G.J. Smith Realty | 908 East Jackson | Medford Oregon 97504
Office 541-858-9383 / Fax 541-857-9526 | E-mail:gjsmith@mind.net



This article is not intended to provide specific advice, but rather to provide insight into matters that we feel are useful. As always, seek professional advice prior to taking any action.

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