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Show HOME BUYER' CLINIC By Robert C. Batej flt-J President ' American Land Title Association Searching Question You have signed a real "estate purchase contract for 4 that split level home you've wanted, and the title search of public records has shown no matters affecting affect-ing the security of your ownership. Apparently, the way is clear for you to complete the transaction that will assure good title to your new home. Or is it? r In a western 1 ' state, a home TIT b u y e r had VOs i scarcely com- 7YJL pleted his pur- mJrs U chase when Bates notice was received from the Internal Revenue Service that the federal agency intended to seize the property to satisfy two tax liens recorded against previous owners of the real estate. These liens were duly filed but were not detected before completion of the purchase due to confusion con-fusion in the records and title search. Since the buyer was protected pro-tected by owner's title in- surance, the title company paid the tax liens to protect the insured against financial loss. Many opposing rights . may be claimed in real property, with tax liens being only one example. Such rights will not always be disclosed by a title search. Among other rights that' may exist in real estate are mortgages, special assessment assess-ment liens, judgments against current or former property owners, ownership use and occupancy restrictions, restric-tions, mineral rights, air rights, and easements both above and beneath the ground. For a one-time premium at closing, owner's title insurance will pay for the defense of an attack on title as insured and will either eliminate undisclosed title defects or pay valid claims. For effective protection, a prudent home buyer should consider precautions ' that extend beyond a title search to include owner's title insurance. Free information infor-mation on the subject may be obtained by writing American Land Title Association, Asso-ciation, Box 566, Washington, Washing-ton, D.C. 20044. |