OWNERS pOLICIES OF TITLE INSURANCE
Whether refinancing or purchasing property, you may purchase a Policy of Owner’s Title Insurance that protects you from loss in the event there is a defect in the title to the property by way of undisclosed liens or omitted heirs in the chain of title. The Title Insurance Company also has a duty (in most cases) to hire an attorney to defend the title to your property. While the closing attorney is generally liable for any discoverable defects in the title, the attorney’s liability is based on a negligence theory of law while the title insurance company’s duty to defend and indemnify is, for the most part, absolute. Any attorney’s fees and costs expended in pursuing a closing attorney in an action for negligence is not recoverable in that action and therefore, one may generally spend more money than the value of the title defect thereby making any suit impracticable.
The South Carolina Department of Insurance regulates the Title Insurance Industry and the Company’s rates are filed with the State and the premiums may not be discounted in any way. The attorneys in South Carolina are generally the title agents and are required by the State, when issuing a lenders policy of title insurance, to offer the owner of the property a policy. Generally speaking, assuming the loan policy is less than the purchase price or value of the property, you would only have to pay a simultaneous issue premium of $ 100.00 or the difference in the premium for the higher value amount, which ever is greater. Premiums for the policies when issued simultaneously are not duplicative.
The policy of tile insurance will protect you from liability and indemnify you for loss even after you have sold the property, and it needs be purchased only once. Also, if you have a policy of owner’s title insurance, you may qualify for discounts on subsequent lender’s policies if you refinance (up to 50% off the regular rate).
Please contact our office if you have specific questions about title insurance.