Purchase the title insurance, and don't fret about ownership It even covers you against 'hidden defects'

REAL ESTATE MAILBAG

October 15, 1995|By Michael Gisriel

Dear Mr. Gisriel: Why should I purchase title insurance if there has been only one previous owner since the land was subdivided?

Alex Fry

Bel Air

Dear Mr. Fry: Owner, as well as lender or mortgage title insurance, is always recommended for those purchasing a house. There is a one-time premium paid at settlement at rates set by the state. (In Maryland, the rate for owner's and lender's title insurance when purchased together is $3.50 per $1,000 of coverage.)

Title insurance covers you forever against losses from a defect of title. The title examination will disclose the owner of the property and any recorded liens or exceptions against the title.

Title insurance covers you against any defects in title that are discoverable from a title examination -- that is, a review of the abstract of the original land records. And it also covers you against "hidden defects" -- such as forgeries, missing spouses not joined in the deed, mental incompetents or minors signing deeds, missing heirs and similarity of names.

The only way for a purchaser to protect his investment is to purchase owner's title insurance. The owner's title policy will guarantee forever that the title is free of any defects and from any lien unless specifically set forth in the policy as an exclusion.

Dear Mr. Gisriel: I want to buy a house in Baltimore City but I don't know how to judge which neighborhood is right for my family.

Can you help me?

John Lloyd

Baltimore

Dear Mr. Lloyd: Neighborhoods have their own personality, and your real estate agent can give you information about them. But the real story can be learned only by talking with people from the neighborhood.

Baltimore is a unique city, with almost every area of the city

covered by a community association. A directory of neighborhoods is published by the city's Department of Planning, with boundaries and the name of the local association.

Call the association president from the neighborhoods you are considering and, perhaps, a non-profit housing organization such St. Ambrose or Neighborhood Housing Services. (Telephone [410] 327-1200)

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