When you buy a home, you receive a title to the property, meaning you are now the full legal owner of that property -
including all of its problems. Title insurance for real estate provides protection against loss if a covered defect is found
in the title to real property. You can purchase it for a one-time premium, paid in most cases at closing. Title insurance
usually covers four types of risks: errors, liens, ownership claims, and invalid deeds. If a claim is made against your
property, the title insurance company will negotiate with the other party to settle the claim, defend you in court if
necessary, pay any incurred legal costs, and satisfy any covered claims. Having title insurance can save you time,
money, even your home. Many parcels have covenants or restrictions that run with the land. If there is a reversionary
clause in the document which established the covenant or restriction, then a violation could cause ownership of the
property to revert to a prior owner. Additionally, if a lien (such as a tax lien, mortgage, or mechanic's lien) is attached
to the property and has not been satisfied, then YOU are purchasing the property subject to the lien. You could
actually pay for the property, and then lose it in a forced sale to satisfy the lien.
Typical hazard insurance covers a loss from the date of the policy forward in time. In other words, the insurance
company will not pay for a loss that occurred prior to the issuance of the policy. There is no need to buy fire insurance
for a home that has already burned. However, title insurance covers actions which have occurred PRIOR to the
issuance of the policy. Many situations occur, particularly in rural communities, which affect the title to the parcel.
What if all of the heirs of a deceased property owner did not sign a prior deed? What if the parcel was purchased at a
tax sale? What if a lender failed to release a mortgage? What if . . . . . ?
The job of Johnson County Abstract Company, as an agent of Attorneys' Guaranty Title Fund, is to insure property
owners against the inherent risks associated with the purchase of real estate. A one-time fee guarantees your
protection. Johnson County Abstract Company has been in business for over 100 years. In most cases, the title
search is less expensive and more complete than those of competitors because the title company is in possession of
thousands of abstracts of property located within Johnson County. Do you need title insurance? Well, do you need
fire insurance? If your home never burns, then possibly the answer is no. But knowledge of a clean title provides
security and peace of mind. Additionally, almost all lenders require title insurance in order to mortgage the land.
Should you be less protected? Possibly the most expensive purchase you will ever make is that of your land. Isn't the
purchase worth insuring?
Do I need title insurance?