Lee R. Schroeder | The Lima News
Avoiding fraud before and after purchasing property is more important than ever, especially in light of the increasingly sophisticated cyber threats that continue to evolve.
Upon purchasing a property, a buyer should always get title insurance. That title insurance will guarantee that no one else in the world other than the buyer has any ownership rights in the property as of the date of purchase.
Title insurance is better than even an attorney’s opinion that the title to the property is free and clear of any issues or problems. This is because only title insurance can guarantee and cover the buyer for fraud involving former owners or tenants of the property.
The biggest worry for a property owner nowadays is likely the concern that someone could fraudulently take ownership of the owner’s property by forging a deed.
Many counties, including Allen County, have free services for property owners where subscribing owners are informed if ownership of their property transfers. Similarly, this notification service can be purchased from various private companies. This is helpful, but it is incomplete.
For example, if I am told that someone forged my name on a deed to my property, I will still have to hire an attorney along with a cyber security professional and likely several investigators just to try to find the fraudster, who may ultimately be impossible to find.
A much better and complete option is available for people who buy houses, duplexes and condominiums. Yes, there is literally title insurance that will provide post-purchase insurance against a variety of title issues, including fraud and forgery.
As explained above, traditional title insurance has only ever covered or insured title issues that arose before the homeowner bought the property. This insurance is called “owner’s” title insurance.
However, for houses, duplexes and condominiums, the buyer can purchase “homeowner’s” title insurance. This insurance provides insurance coverage for a slew of title issues — including fraud — that arise AFTER a homeowner buys property.
When a house, duplex or condominium unit buyer purchases homeowner’s title insurance, the property owner has insurance that pays if someone later defrauds the insured owner by forging the insured owner’s name on a deed. This insurance also provides coverage when a neighbor builds a shed or garage over the insured’s property line. And this insurance protects from a neighbor’s claims that that neighbor has an easement or ownership of part of the insured owner’s property due to the neighbor’s use of the property for 21 continuous years after the insured owner bought the property.
Homeowner’s title insurance can only be purchased at the time when the owner buys the house, duplex or condominium unit.
Notably, if there is a claim under homeowner’s title insurance, the insurance company hires all attorneys and other professionals necessary to fix the problem.
For traditional owner’s title insurance, the coverage limit would be the purchase price of the house, duplex or condominium.
However, the coverage limit of homeowner’s title insurance literally increases automatically as the value of the property increases, up to 150% of the purchase price over five years.
Lee R. Schroeder is an Ohio licensed attorney at Schroeder Law LLC in Putnam County. He limits his practice to business, real estate, estate planning and agriculture issues in northwest Ohio. He can be reached at [email protected] or at 419-659-2058. This article is not intended to serve as legal advice, and specific advice should be sought from the licensed attorney of your choice based upon the specific facts and circumstances that you face.
