About Title Insurance

Have you ever wondered why title insurance is necessary? The primary purpose of title insurance is to protect what could possibly be the most important investment youll ever make - the investment in your real estate property.

The purchase of a home is most likely one of the most expensive and important purchases you will ever make. You, and your mortgage lender, want to make sure the property is indeed yours completely and legally,and that no individual or government entity has any right, lien, claim or encumbrance to your property. With title insurance you are assured that any valid claim against your property will be borne by the title company, and that your rights as the homeowner are protected.

How can there be any title defects if the title has been search?

Title insurance is issued after a careful examination of copies of the public record. But even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search.

About Title Insurance Title insurance is necessary to make sure your rights to the real property you purchased are clear, that transfer of title takes place e ciently and legally, and that your interests as a homebuyer are protected in the event of unforseen or fraudulent claims against your property.

What protection does title insurance provide against defects and hidden risks?

Title insurance will pay for defending against any law-suit attacking your title as insured, and will either clear up title problems or pay the losses of the insured party. For a one-time premium, an owners title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property.

Here are just a few of the most common hidden risks that can cause a loss of tile or create an encumbrance on title:

False impersonations of the true owner of the property.

Forged deed, release or wills, instruments executed under invalid or expired power of attorney;

Undisclosed or missing heirs; mistakes in recording legal documents

Misinterpretations of wills

Deeds by persons of unsound mind

Deeds by minors

Deeds by person supposedly single, but in fact married

Fraud

Liens for unpaid estate, inheritance, income or gift taxes

& ESCROW OF HAWAII

Cody Day

OAHU BRANCHES201 Merchant St, Ste 2100, Honolulu | (808) 536-0404 4211 Waialae Ave, Ste 8050, Kahala | (808) 380-6767 609 Kailua Rd, Ste 204, Kailua | (808) 230-80801001 Kamokila Blvd, Ste 151, Kapolei | (808) 380-364098-211 Pali Momi St, Ste 805, Aiea | (808) 485-0505

MAUI BRANCHES WWW.FIDELITYMAUI.COM 285 W. Kaahumanu Ave, Ste 103, Kahului | (808) 893-0556 12 Kiopa'a St, Ste 101, Pukalani (Upcountry) | (808) 573-0110 727 Wainee St, Ste 102, Lahaina | (808) 661-4960161 Wailea Iki Place, Ste C103A, Wailea | (808) 891-2404KONA BRANCH 75-1000 Henry St, Ste 202, Kailua Kona | (808) 334-020

www.FidelityMaui.comTrusted everywhere, every day.

Title Insurance FactsTitle insurance is important for many reasons.Just a few reasons include:

Title insurance will protect you against a loss on your home or land due to a title defect.

A deed or mortgage in the chain of tile may be forgery. Claims constantly arise due to marital status and validity of divorces.

A deed or mortgage may have been made by an incompetent for underaged person.

A deed or mortgage may have been made by a person with the same name as the owner.

A child born after the execution of a will may have interest in the property.

Title transferred by an heir may be subject to a federal estate tax lien.

An heir or other person presumed dead may appear and recover the property or an interest.

A judgment regarding the title may be voidable because of some defect in the proceeding.

By insuring the title, you can eliminate delays when passing your title on to someone else.

Title insurance helps speed negotiations when youre ready to sell or obtain a loan.

A deed or mortgage may be voidable if signed while the grantor was in bankruptcy.

Claims have risen dramatically over the last 30 years.

There may be a defect in the recording of a document upon which your title is dependent.

Title insurance covers attorney fees and court costs.

Many lawyers protect their clients as well as them selves by procuring title insurance.

A deed or mortgage may have been procured by fraud or duress.

A title policy is paid in full by the fi rst premium for as long as you own the property.

& ESCROW OF HAWAII

Cody DayOAHU BRANCHES201 Merchant St, Ste 2100, Honolulu | (808) 536-0404 4211 Waialae Ave, Ste 8050, Kahala | (808) 380-6767 609 Kailua Rd, Ste 204, Kailua | (808) 230-80801001 Kamokila Blvd, Ste 151, Kapolei | (808) 380-364098-211 Pali Momi St, Ste 805, Aiea | (808) 485-0505

MAUI BRANCHES 285 W. Kaahumanu Ave, Ste 103, Kahului | (808) 893-0556 12 Kiopaa St, Ste 101, Pukalani (Upcountry) | (808) 573-0110 727 Wainee St, Ste 102, Lahaina | (808) 661-4960161 Wailea Iki Place, Ste C103A, Wailea | (808) 891-2404KONA BRANCH 75-1000 Henry St, Ste 202, Kailua Kona | (808) 334-020

www.FidelityMaui.comTrusted everywhere, every day.

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