There are numerous steps involved when you set out to purchase real estate. After you've settled on what you're going to buy, there are multiple forms and documents to fill out, and many that need to be verified. Included in that paperwork shuffle is what is called a title search and subsequently the purchase of title insurance.

A title search is a process, usually performed by an attorney or title insurance company, in which all recorded documentation affecting the title to the property you intend to purchase is reviewed. This is done for the purpose of determining a number of items:

1. To find out if there are any existing liens on the property that could affect the sale.
2. To confirm that the seller is in fact the rightful owner, and holds the right to sell the property.
3. To disclose any recorded legal rights to the property, or a portion there of, that someone else may have.

If there are liens on the property, these need to be addressed before the closing to insure a clear deed for the new owner. If there have been any 'rights of way' or easements granted you need to be aware of them. For example: A neighbor may have been given the right to use a portion of the property to gain access to their property or for some other purpose. Or the town may have been granted rights to portions of the property for installation of power lines or septic systems in the future. And, it goes without saying, the seller must, in fact, really be the owner of the property if he's going to sell it to you.

Once it's confirmed that the deed is valid and clear, meaning there are no liens held against it, a buyer should purchase title insurance (and mortgage lenders will typically require it). The cost is relatively inexpensive and it protects the new deed holder against any possible troubles that might arise if unrecorded records, pertinent to the property, should surface in the future.

As hard to believe as it may be, there have been instances where unrecorded deeds, and even liens, have turned up, forcing the current property owner to defend their deeds. Title insurance provides protection in this situation, because the insurances company incurs the cost of defending the deed and, if they fail in their efforts, must reimburse you up to the full purchase price of the property.

In a nut shell, title insurance protects you from those rare, but still very potential, situations that could call the validity of your deed into question. Fraudulent practices are rampant in our society, and it's important, if not essential, to protect yourself from being caught up in one of them.

Investing in title insurance is a very effective way to protect yourself and your property from some very serious ramifications that could arise after the sale of the property is complete. You've invested a considerable amount of money in your property. Purchase title insurance and protect it. It's a small investment decision that safe guards a much larger one.