We’re know the buying/selling housing market has been crazy. We've also seen plenty of scarey news items saying everyone is at risk of having their home stolen from under them by a crook who fraudulently forges their home title.

It's important to know it's being overhyped by companies selling Identity protection and Title Fraud protection.

This is a three-part series on what Title insurance is, what Title insurance protection is (and isn’t) and who is really at risk as far as homeownership and Title fraud is concerned.

What exactly is HomeTitle Insurance?
Title Insurance is a legitimate business where companies are paid by the home buyer or lender to guarantee the validity of a Title. It shows:

1) The history of ownership for the property including who currently owns the property. 2) The physical description of the titled property, & 3) any claims on the property, like a lien (which your financial institution would have if you took out a loan at time of purchase).

What YOU need to know! No serious buyer, no legitimate real estate person, no financial institution would agree to buying (or funding) the purchase of a property without a valid Title search by a Title insurance company.

How am I protected? If an issue is discovered by the Title company, they will report that to the buyer and insist the current owner clear the issue up prior to sale. Usually, the seller buys title insurance for the buyer and the buyer buys it for the mortgage company.

After purchase, the Title company insures the validity of the title while you own the home. If they made a mistake, they pay for the cost to correct it, legal or otherwise. If you are the current owner and there is an issue and it is a legitimate issue, you need to address it before the property can be sold.

What if FRAUD happens? If on the other hand the claims are fraudulent, you may need to hire an attorney to clear it up (like a fraudulent or unsubstantiated lien being placed on your property). It is important to note, if the lien, change of Title or other claim were fraudulent, you will not be at risk of losing your property. It is the responsibility of the jurisdiction to ensure all filings are legitimate and proper.

Our Advice
If you are concerned, you can always check out the status of your property via the Erie County website (https://www.countyoffice.org/property-records/). It will show ownership as well as other pertinent information about your property ownership.