Risk Elimination Before Insuring
An important part of title insurance is its emphasis on risk elimination before insuring. This means the insured has the best possible chance for avoiding title claim and loss.
Title insuring begins with a search of public land records for matters affecting the title to real estate concerned. The examination of evidence from a search is intended to fully report all material objections to the title. Frequently, instruments that don't clearly pass title are found in the chain, or history, of ownership assembled from the records in a search. These need to be corrected before a clear title can be conveyed. Here are some examples of instruments that can present concerns.
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> Deeds, wills and trusts that contain improper vestings and incorrect names
> Outstanding mortgages, judgments and tax liens
> Easements
> Incorrect notary acknowledgments
Through the search and the examination, title problems like these are disclosed so they can be cleared up whenever possible. But even the most careful preventive work cannot locate hidden hazards of title.