A chain of title is not always perfect. Ownership rights of a property can be clouded by a number of potential liens as well as prior incompetence and maybe even fraud. Gaps or problems in a chain of title put a seller in a difficult predicament as these items need to be cleared by a NJ Title Company that is closing the transaction.
For example, that beautiful Montclair Victorian with the horseshoe driveway may have been purchased under false pretenses. The party selling you that home could have swindled it from that grandmother who was not of sound mind to make a decision to sell. If it wasn’t for the examination in order to obtain NJ Title Insurance and the proper due diligence by the NJ Title Company then a prior deed such as this may not be properly exposed.
How could all of this have affected you? The grandmother’s errant son could enter the picture and stake his claim to the property. And so the legal battle begins. With NJ Title Insurance the legal battle is now up to the NJ Title Company to defend.
That’s when the benefits of New Jersey title insurance come into play. A policy will protect you from:
• Financial loss stemming from claims asserted against the title.
• Legal bills resulting from defense of the title claim.
• Losses incurred from a successful claim against the real estate covered by the policy.
Our NJ Title Company has a full array of policy options to help guard against an unforeseen encumbrance clouding the title. These policies protect against the expense of battling a dispute, which could end up costing more than the amount of the real estate in question. NJ title insurance will mitigate these costs up to the face amount of the policy.
There are numerous potential clouds on title, such as:
• False impersonation
• Forged deeds
• Deeds by persons of unsound mind
• Deed to minors
• Invalid documents or deeds
• Deed without a spouse jointly selling
• Liens for unpaid estate or gift taxes
• And the list goes on…
You may ask yourself, how much protection do I need? Purchasing an enhanced title insurance policy may be a good idea if you are worried about particular types of future claims.
Many may question what the difference between NJ owners title insurance is versus NJ lender’s title insurance? The answer is simple, lender’s title insurance is required for the purchase of a home in New Jersey to protect the bank’s interest in the property. Whereas an owner’s policy from our NJ Title Company protects you the buyer from any past lien or cloud on title.
Contact our NJ Title Insurance company to see how we can assist in make buying your dream home a little easier. We have several attorneys on staff that are happy to answer your questions and help guide you in the right direction.