If you do not already have an Owners Policy of Title Insurance in effect, we offer you the opportunity to obtain one before you close the sale of your property. It may seem strange to you that we would recommend that you insure your property when you are about to sell it, but it is not. As we indicated, the deed you will deliver to the closing includes a number of promises to the buyer, including a promise that you have good title and that there are no encumbrances on the property. These promises last for at least fourteen years from the date you deliver the deed and perhaps longer. In general, it is unlikely that you will have a problem in the future because someone claims that you did not have good title to your property. In the event it happens, however, an owner's title insurance policy will protect your interests if there is ever a claim made against you for a defect in the title, whether or not the claim has a legitimate basis. You pay the premium for the policy only once and the policy remains in effect for as long as you may be held liable for a problem with the title. In comparison with costs of defending a claim brought against you, which would include attorney fees and expenses, the cost of the title insurance is minimal.

With the increasing complexity of real estate transactions and the number of claims that are being prosecuted for allegedly defective titles, we now recommend to all of our clients that they have an owner's title insurance policy to be adequately protected. You should be aware, however, that the policy will not protect you from encumbrances and other matters affecting your title that you created through your own actions or allowed to encumber your property.

In most cases, there will not be a defect or a problem with the title, and our research into the title will turn up issues that are apparent from the land records during the period we search the records. That period is usually about forty years. There are some problems which we will be unable to find, no matter how long we spend reviewing the title. There are also a number of things that the attorney who searched your title would not customarily review, which may result in a claim. Some of these items represent various kinds of claims that do not generally appear in the public record, but will affect the title to your property.

In response to the concerns about permits and zoning problems which above briefly described above, Vermont Attorneys Title Corporation offers a new form of title insurance policy with more protection for the insured against losses incurred as a result of defective permits. This new policy is known as the Expanded Protection Policy. This policy provides insurance for certain kinds of problems arising from the violation of zoning laws and the failure of the property to have been properly subdivided. The coverage is subject to some limitations which we can explain to you. You will see that the premium for the Expanded Protection Policy is higher than the premium for a standard policy, but the enhanced coverage of the Expanded Protection Policy usually justifies the larger premium. Keep in mind, this policy will not insure you against losses for matters that you created or allowed to encumber your property, such as an addition you built on your house without a permit. This policy is only available for 1-4 family residences or for a residential condominium.

The information you obtain at this site is not, nor is it intended to be legal advice. You should consult an attorney for individual advice regarding your own situation.