How to Protect Title

Question: Three years ago we paid $650,000 cash to buy our Sun City home. At closing, we received a recorded deed and a title insurance policy from our escrow company. There are advertisements, however, on television to buy more title protection to “protect your title” or “don’t let internet thieves steal your home.” Can “internet thieves” steal the title to our home when we have a title insurance policy? In other words, do we need to purchase more title protection?

Answer: Probably not. There are several national billion-dollar title insurance companies, such as Fidelity National Title Agency and First American Title, that issue title insurance policies to Arizona home buyers. At the closing of your Sun City home, you should have received from one of those national title insurance companies a “clean” title insurance policy. Thereafter, if there is a title defect in the chain of title to your Sun City home, e.g., a forged deed, you would simply turn that title defect claim over to your national title insurance company to resolve that claim, similar to turning over an automobile accident claim against you to State Farm or Allstate.