As you wrap up the purchase of a new home after a favorable home inspection and clean title search, everything should be smooth sailing! However, mistakes can sometimes be made, and aspects of your title and property are overlooked. Too often, homeowners are caught unawares by surprise title issues after purchase, even when an initial title search comes back empty! As this can sometimes be an issue for home buyers and sellers, it’s recommended that those participating in a sale apply for title insurance. With help from Essig Law Office, we can assist you in finding title insurance in Illinois and get you back on track for a successful real estate sale.
What is Title Insurance?
Thanks to title insurance, you can protect yourself against financial loss due to defects in a property’s title. Title insurance is unique in that it protects holders against issues concerning past occurrences rather than coverage for future events. However, having title insurance is still proactive because not all title issues are known beforehand.
When you purchase title insurance, the insurer thoroughly searches public records to identify and remediate any title issues before issuing the policy. Furthermore, if any undiscovered claims emerge after the property is purchased, your title insurance policy will cover legal costs and losses up to the policy’s amount.
Why Do You Need Title Insurance?
Although Illinois law does not require title insurance for a property purchase or sale (unlike other states), it’s highly recommended. Unfortunately, many title issues can result in costly resolutions you’re on the line to pay if you hold the title, no matter who is at fault. As such, securing a reasonable policy is essential to avoiding expensive legal fees when traversing the Illinois real estate market. With title insurance, you can expect protection from mistakes like:
- Undiscovered Liens – Title insurance can protect you from unexpected financial liabilities from previous owners’ unpaid debts that have become a lien on the property.
- Errors in Public Records – Human error in recording or filing property documents can affect the ownership of your property. Title insurance covers any legal fees involved in defending your property rights.
- Illegal Deeds – If prior deeds were made by unauthorized parties (e.g., minors, undocumented immigrants, or those of unsound mind), title insurance helps rectify the impact on your property rights.
- Heirs Making Claims – Sometimes, unknown heirs of the previous owner may come forward claiming ownership of the property. Title insurance provides a safety net against such claims.
- Easements and Encroachments – If it’s discovered that your property infringes on another’s land or an unknown easement limits your use of the property, title insurance can be invaluable.
- Forged Documents – Title insurance offers protection against claims arising from forged or fraudulent documents previously filed within the public records that affect the title to your property.
What’s Not Covered by Title Insurance?
While title insurance covers a great deal, some infringements are not covered under most standard policies. For example, your insurance policy does not cover any unpaid liens or missing property taxes incurred by the current title holder (you). Also, in rare cases, title insurance does not cover eminent domain. To best understand what is and isn’t covered under title insurance, you can receive compensation for any title issue that dates back to before your ownership of a property, but issues that occur after your established ownership are your responsibility.
How Can Essig Law Office Assist with Your Property Title?
A title insurance company isn’t the only place where you can request a title search on a piece of property. Attorney offices like Essig Law can also lend a hand in this regard. Often, clients request our help with title searches before deciding on a title insurance company to work with. Additionally, Essig Law Office can assist in finding you a title insurance company willing to provide coverage for your real estate transaction.
Otherwise, if you have issues with your title or receiving appropriate compensation from your title insurance company, Essig Law can help. Our team is always in your corner, fighting disputes that can arise from misunderstandings related to your title insurance policy. While title insurance in Illinois is beneficial, companies aren’t always obliged to have your best interests at heart. Attorneys like Essig Law Office can help ensure your title issues are resolved and you receive fair compensation for the trouble.
If you are in the real estate transaction process and still on the fence about whether title insurance is right for you, talk with the real estate attorneys at Essig Law Office. We can help you move forward with your real estate sale with peace of mind, knowing that if your title has a problem, it won’t last long.
To learn more about our real estate law services, or if you are interested in our additional practices, including family law, estate planning, personal injury, criminal defense and more, call 309-444-8041. Our main office is located at 135 Washington Square, Washington, IL 61571.
