Client Login

Law Offices of T. Nicholas Tyszka, L.L.C.

Chicago's Real Estate Law Firm
(312) 488-1250

HOME     |     OUR FIRM    |     ATTORNEYS     |     PRACTICE AREAS     |     LEARN   |     FIRM NEWS     |     CAREERS     |     CONTACT US

HOME: Title Services: What Is Title Insurance?

Title Services

WHAT IS TITLE INSURANCE?
Real estate has traditionally been a family's most valuable asset. It is a form of wealth that is protected by many laws. These laws have been enacted to protect one's ownership of real estate and the improvements located on the land. The owner, the owner's family, and the owner's heirs have extremely b rights or claims in and to the property that you are buying. Those who may have an interest in or lien upon the property could be governmental bodies, contractors, lenders, judgment creditors, the Internal Revenue Service, or various other individuals or corporations. The real estate may be sold to you without the knowledge of the party having a right or claim in and to the property. In addition, you may purchase the real estate without having any knowledge of these rights or claims. In either event, these rights or claims remain attached to the title to the property that you are buying until they are extinguished.

Generally, a person thinks of insurance in terms of the payment of future loss due to the occurrence of some future event. For instance, a party obtains automobile insurance in order to pay for future loss occasioned by a future "fender bender" or for the future theft of the car. Title insurance is a unique form of insurance. It provides coverage for future claims or future losses due to title defects which are created by some past event (i.e., event prior to the acquisition of the property.) These risks are far less obvious than those protected against by automobile insurance, but can be just as devastating. The following information will answer some commonly asked questions about title insurance.

It is of utmost importance that you receive clear title to the property when you purchase real estate. In order to do so, you must first be informed of any existing rights or claims that may, in the future, threaten your title and possession to the property. Title insurance provides you with this twofold protection.

In order to determine the status of title, your title company conducts a diligent search of the public records for those documents associated with the property. The title company then examines those recorded documents in order to determine if there are any rights or claims that may have an impact upon the title to the property. The title search may reveal the existence of recorded defects, liens or encumbrances upon the title such as unpaid taxes, unsatisfied mortgages, judgments and tax liens against the current or past owners, easements, restrictions and court actions. These recorded defects, liens and encumbrances are reported to you prior to your purchase of the property. Once reported, these matters can be accepted, resolved or extinguished prior to the closing of the transaction. In addition, you are protected against any recorded defects, liens or encumbrances upon the title that are unreported to you and which are within the coverage of the particular policy issued in the transaction. This is the first benefit you receive from title insurance.

The title to the property that you have purchased could be seriously threatened or lost completely by hazards which are considered "hidden risks." "Hidden Risks" are those matters, rights or claims that are not shown by the public records and, therefore, are not discoverable by a search and examination of those public records. Matters such as forgery, incompetency or incapacity of the parties, fraudulent impersonation, and unknown errors in the records are examples of "hidden risks" which could provide a basis for a claim after you have purchased the property. In order to protect you against this possibility, the title company provides insurance coverage for such claims. This is the second benefit you receive from title insurance.

If a claim is made against your insured title, your title company protects you by: (1) Defending your title, in court if necessary, at no cost to you; and (2) Bearing the cost of settling the case, if it proves valid, in order to protect your title and maintain your possession of your property.

Title insurance gives you the assurance that possible clouds on title to the property you are purchasing - which can be discovered from the public records - have been called to your attention that such defects can be corrected before you buy. Additionally, it is insurance that if any undiscovered claims covered by your policy arises out of the past to threaten your ownership of real estate, it will be disposed of, or you will be reimbursed exactly as your title insurance policy provides.

Unlike other forms of insurance, the original premium is your only cost as long as you or your heirs own the property. There are no annual payments to keep your Owner's Title Insurance Policy in force.


For more information on how we can help you with your real
estate-related matter, please call us at: (312) 488-1250.

 
 


401 N. Michigan Ave.

Office Location:
401 N. Michigan Ave.
Suite 1200
Chicago, Illinois 60611-4264

Telephone:
(312) 488-1250

Facsimile:
(312) 488-1251

HOME

OUR FIRM
  Doing Good
  Firm News

ATTORNEYS
  T. Nicholas Tyszka

TITLE SERVICES
  What Is Title Insurance?
  Common Questions
  Our Affiliations
  Rate Cards

LINKS

PRACTICE AREAS
  Real Estate Transactions
      Closings
      Refinancing
      Short Sales
      Land Trusts
      Self-Directed Real Estate IRAs
      1031 Exchanges
  Real Estate Litigation
      Pre-Closing & Post-Closing
  Property Tax Appeals
  Condominium & Community Associations
  Zoning & Land Use
  Landlord/Tenant
      Lease Negotiation & Drafting
      Evictions
  Eminent Domain & Condemnation   Construction Law & Mechanic's Liens
  Foreclosure Defense

 

LEARN
  Illinois Laws & Chicago Laws
  Frequently Asked Questions
  Forms & Glossary of Terms
  Buying 101 & Selling 101

THE VALUE OF AN ATTORNEY IN A REAL ESTATE TRANSACTION

REALTOR RESOURCES

WHAT'S HAPPENING IN ILLINOIS REAL ESTATE LAW

UPCOMING EVENTS

CONTACT US
  Telephone, Fax & E-mail
  Office Location
  Social Media

CAREERS

Site Map  |  Attorney Advertising
Disclaimer  |  Privacy Policy




Copyright 2020.
All rights reserved.

Law Offices of T. Nicholas Tyszka, L.L.C.

401 N. Michigan Ave., Suite 1200
Chicago, Illinois 60611-4264
Telephone: (312) 488-1250

DMCA.com

FacebookLinked InTwitterGoogleMantaRSS