Title Insurance...  

Protect Your Investment - Lenders make you buy it for them - their regulators demand it - your title company recommends it - the law warns you if you decline it - so...Why do you need owners' title insurance?  

Owners' title insurance...  

Because your real estate investment is too valuable to risk without this modestly priced financial safety net - the best money spent on something that you will likely never need...to cover the rare catastrophic instance when you might...  

It is essential to have the title to your real estate professionally examined but that is not enough - get a solvent title insurance company to stand behind the title to your valuable investment - Please consider this...  

Some families can afford to take unnecessary risks but why would you risk your investment in your family home without the inexpensive "safety net" that an Owners' Title Insurance Policy would provide?  

Each year, of the tens of thousands who experience title claims - every one who had owners' title protection rejoiced and every one who declined it agonized over their decision to "save" the modest one-time premium...if you think you cannot afford it then please understand that you really cannot afford to be without it - Lender's title insurance gives you NO protection - so don't be a "dummy", get Owners' Title Insurance.  

Generally What Is Covered  

Subject to the policy terms, a national title insurance company (required by Law to be solvent and maintain adequate reserves to pay claims) insures against loss or damage you might suffer by reason of:   

• Your title to the real estate being vested other than as stated in your policy;

• Defect, lien or encumbrance on the title;

• Unmarketability of your title; and

• Lack of a right of access to and from the land.

And, subject to policy terms, the title insurance company will provide (at its expense) your legal defense if your title is challenged.

Consider these hypothetical cases that are inspired by actual events...

The Lady in Red:  

You learn from your Realtor that the owners of your "dream house" are getting divorced and the perfect property has just come on the market.  Your $200,000.00 purchase agreement is accepted, your $160,000.00 loan is approved, the closing takes place (the sellers seemed like such a friendly couple), the documents are recorded and you move in - things could not be better…and you "saved" $337.00 by declining the owner's title coverage.  

Then you get served with a lawsuit from the seller's real ex-wife alleging that the lady in red who "forged" her signature on the sale to you was really an imposter.  A handwriting expert confirms the forgery.  You only own a one-half interest in the property (but you still owe the whole mortgage loan).  You consult several attorneys until you find one who will handle such cases but he advises that you should have bought an owner's title policy; that he needs a $5,000.00 retainer before he will handle the case; that it "looks pretty bad"; and that there are "no guarantees".  

If you had purchased the owner's policy the insurance company would purchase the outstanding interest in the property and the legal defense would be paid at no expense to you.

Granny Died:  

You bought a $100,000.00 house for cash from a nice lady who had purchased the property from her grandmother.  The title exam showed the properly executed and recorded sale from Granny to her granddaughter - you didn't think you needed to pay the one-time $429.00 owner's title policy premium.  

Then you get sued by Granny's heirs, who produce a death certificate proving that Granny had died before the date she allegedly "sold" the property - they ask the Court to set aside the fraudulent conveyance to the granddaughter and the sale to you.  You are going to lose both the case and the property as well as what you paid to "buy" it.

The Commercial Property:  

You bought warehouse property (without warranty) from a bank for $1,000,000.00 then spent another $200,000.00 setting it up for your business.  A million dollar owner's policy would have cost you $3,429.00 - that's a lot of money.  But then...  

Case 1: The Rental Demand  

The former owner of the property sues you and the bank claiming that the bank had maliciously and illegally foreclosed the property before it was sold to you, seeking to have the sale to you set aside and demanding that you pay rent in the amount of $10,000.00 per month until the case is decided.  The lawyer who brought the suit advertises that he will do divorces for $60.00...or...  

Case 2: The Unrecorded Purchase Agreement  

A party sues you and the bank, alleging that the bank had given him an agreement to sell the property and that he had been ready, willing and able to buy it but that the bank wrongfully sold it to you - he wants the sale set aside.  The bank says that you cannot be bound by an unrecorded purchase agreement and that the claimant is a "squirrel" who couldn't buy a nut...  

You are probably going to win in either case but in doing so your attorney's fees will likely be a multiple of up to ten times what the owner's policy premium would have been.

Not So Good Friday  

You refinanced your home loan a couple of years ago and your Old Title Agent used the loan proceeds to pay off your original first mortgage but the "release" was inadvertently never recorded. You discover that on the Friday morning when you are scheduled to sell the house but the closing will be postponed under the terms of the purchase agreement for up to 30 days because of the "title problem".  This makes you very anxious and angry because you are scheduled to buy your new house that very afternoon with the proceeds of the sale and the moving van is scheduled to arrive that same afternoon.  

So you complain angrily to Old Title Agent, who nonchalantly says he will get around to it in a week or so.  You become even more angry and demanding, threatening to inform Old Title Agent's title insurance company but he reminds you that you did not buy an owner's policy and, if you had, the company would have had to insure your sale so as to avoid any delay.  You are sure that you bought title insurance and tell him so.  He says that you only paid for a lender's policy.  You tell him, "But you told me I didn't need an owner's policy."  He replies, "I recommended it but you signed a statement declining it".  You threaten to get a lawyer and he says, "Go ahead" then hangs up the phone.  

A week later when the matter is eventually resolved the sale of your old house takes place thereafter your purchase of the new house is closed and you buy an owner's title insurance policy and now recommend owner's title insurance to everyone.

Charxxx Title  

You are retired and pay $100,000.00 cash for your retirement home.  It is closed by the largest and most prominent title agency in the history of the State of Louisiana.  They competently check the Public Records.  They expertly prepare the closing documents.  They promptly record your acquisition.  But then they steal your money from their escrow account, their check to your seller bounces, they go out of business, they file bankruptcy and they eventually go to jail.  The seller sues you to have the sale set aside since the sale price was never paid.  You lose your property...  

Together with others like yourself, who were all scammed by this reputable, competent but dishonest title agency, you lobby the Louisiana legislature and precipitate the subsequent passage of the Louisiana Title Insurance Act.  Now you would be protected under that Act - if you buy owner's title insurance.

Announcing The
Extended Coverage Title Insurance Policy

The Best Coverage Available In The Title Industry  

A new "extended title coverage" title insurance policy is now available to one-to-four family residential homeowner's and their lenders in Louisiana providing coverage beyond what has traditionally been offered in the standard owner's policy (which will continue to be available).  Dubbed the First American "Eagle" policy, United General's "Five Star General" or Stewart's "Expanded Coverage" policy, this optional "extended title coverage" may be purchased for a modest surcharge of only 10% of the gross premium for a standard policy.  

Promotional brochures are available detailing the expanded homeowner's title coverage, which includes:  

• Inflation protection (up to 150% of policy value - 10% per year for 5 years)

• Protection against Courthouse indexing delays (gap coverage)

• Building permit and zoning violation coverage (with deductibles and caps)

• Subdivision violation coverage (e.g., if property was improperly subdivided)

• Restrictive covenant violation protection

• Even post policy coverage of risks such as forgery, encroachments, adverse possession (fee and easement), mineral extraction structural damage, "convenient" access, and living trust coverage (if property is transferred to a trust)

...all of that value and more for a mere 10% premium surcharge...but moreover something new that truly helps consumers.

Title insurance rates are set by Law in Louisiana  

How to get a Title Order Fax Form