By Rich Rodenburg – REALTOR ®

Some of us remember, when purchasing a home, we received a book complete with the history of past owners, encroachments, covenants, liens, and more. An old home abstract is very interesting reading. Before transacting a sale, we hired lawyers to read the abstract and render an opinion that the title was clear. No guarantee that the opinion was correct.

We now use title insurance instead. The title company reviews the recorded deed transfers, checks for clouds and/or encumbrances on the title in the way of liens, judgments, and any break in the chain of title. Then, after resolving problems, insures the new owner that they are buying a property with a clear title. If, for instance, Uncle Joe shows up and claims he has title rights, the title company will resolve the issue. The home is yours, regardless.

Your new lender will require title insurance, and it is money well spent even if the purchase is without a lender. The cost for title insurance on a $200,000 home is around $750. Usually the buyer and seller split the cost equally. The buyer chooses the title company.

Let’s get back to Uncle Joe. Not only does he claim Grandma willed him her house, but he put on a new roof for grandma and never got paid. He wants his property back and the money for the roof. When the title company does their search at the county courthouse, it looks to see this if this was filed properly. All liens need to be filed, dated, and recorded with the county, as do judgments and documents affecting ownership. If records were there, but missed, the title insurance policy protects your home interest. If the claims were not properly recorded, Uncle Joe might be out of luck.

(Special thanks to Nebraska Title’s Vicki Williamson)