Benefits of Owner's Title Insurance
 
Prior to the closing of your new home or condominium, your Lender's attorney will offer you the option of purchasing an Owner's Title Insurance Policy. While a Lender's Title Insurance Policy is required by almost every lending institution in Massachusetts, the purchase of an Owner's Title Insurance Policy is completely optional. And although a Lender's Title Insurance Policy protects your Lender's interest in your property up to the amount of the loan, only an Owner's Title Insurance Policy will protect your interest in your property up to its purchase price during your ownership of that property.
 
While the purchase of your new property shouldn't come with inherent risks, through the years your new property has more than likely changed hands many times through sale, inheritance, foreclosure or bankruptcy. Each transfer of title is an opportunity for an error or title defect to arise. These errors may remain hidden despite the most thorough search of public records.
 
An Owner's Title Insurance Policy provides you with insurance against loss or damage arising by reason of previously existing title defects, unmarketability of the title or lack of a right of access to and from your property. Included in these title defects are issues arising from confusion from similarity of names, forged documents, clerical errors in legal documents (deeds, mortgages, discharges, etc) or mistakes in recording the same, fraud, unpaid or misapplied taxes, misrepresentation of marital status, wills not probated, etc. Should a claim arise under any of the above, your title insurer will pay costs, reasonable attorneys' fees and expenses incurred in defense of the title to the extent provided in your policy.
 
Even though it may not be likely that an issue will arise relative to your ownership of your new property, for a one-time purchase price, an Owner's Title Insurance Policy will protect you from any such title defects.

Law Offices of Michael Kaplan
Michael Kaplan
8 Clarendon Street
Boston MA 02116
Tel: (617) 266-7271
Fax: (617) 536-3790
Email: michael@michaelkaplanlaw.com
Web: michaelkaplanlaw.com