But what would happen if the challenge to ownership came many years from now, and what if the previous owner were bankrupt or even deceased? How would I pay for a court defense against a challenge to my ownership, and if I lost in court, how might I be protected?

The truth of the matter is that challenges to title are rare. In addition, the vast majority of title problems are discovered by title attorneys when they examine the records of ownership prior to a closing.

So it’s not unusual for a closing attorney to contact a seller prior to closing with a list of questions, such as:

* Were the 1999 county taxes ever paid? There is a "tax lien" in the amount of $614.21 filed against the property by the tax commissioner, and it was never satisfied.

Answer: Yes, the bill was paid, but the county never released the property. No big deal, this can be solved with a call to the tax office.

* Why is there a unsatisfied mortgage payable for American Federal Savings originally dated 1987 in the amount of $98,000?

Answer: The lender went defunct during the S&L crisis, and the loan was sold to a lender in Maine. The owner refinanced shortly after that and paid off this loan, but the Maine lender never followed through by recording a "satisfaction." No big problem, time for a call to the Maine lender.

These types of title irregularities are common and easily resolved. And once settled, the closing attorney can issue an opinion of title, stating that the seller’s ownership of the property is clean and transferable.

So, in addition to making sure my attorney performs a thorough title search, why do I always buy owners title insurance? Because there are problems which may crop up in the future which no one could have anticipated at the time of the title examination.

For example, what happens if it is determined that somewhere in the chain of ownership, a relative illegally forged the name of an owner onto a contract and then onto a warranty deed. The descendants of the rightful owner were cheated out of their rightful inheritance. What if they sue the present owner today, asking that ownership of the house be returned?

Or what if a builder builds me a house on Lot B, then fires the plumber, who files a valid mechanics lien on Lot B, but the clerk at the courthouse files it mistakenly under Lot 8, which is around the corner. And now I buy the house for cash, obtaining a clear certificate of title because the lien is nowhere to be seen. Unfortunately, the lien is still valid, and the plumber will eventually correct the filing error. What happens then?

These are perfect examples of hidden claims against ownership that can surface years after your ownership begins, even though you had a full title search and even though no one has ever made a claim against you in the past.

The only way to protect yourself against these types of undetectable claims is to purchase a product at the settlement table called owners title insurance. And because this product is an optional expense, many buyers decline this protection.

It is important to distinguish this product from lenders title insurance, which is paid for out of closing costs and always protects only the lender. In any closing involving new financing, the lender always requires that lenders title insurance be purchased. As owners, we should take a hint from the lender.

In contrast, owners title insurance is optional, and costs about $2 per thousand dollars of the purchase price of the property. The good news is that this is a one-time premium, and the policy covers the buyer for as long as you or your heirs own the property.

Another reason you should always buy owners title insurance at closing is the recent rash of mortgage fraud cases in Georgia. Here’s an example:

Mr. Jones owns a house in Atlanta free and clear of debt, then retires to Miami. As he leaves, he rents the house for 24 months to Mr. Crook, who moves into the house in Atlanta. The next day, Mr. Crook copies Mr. Jones signature from the lease onto a warranty deed, then records a fraudulent deed making Mr. Crook the new owner of the house, free and clear.

After a few months of paying rent, Crook runs a "for sale" ad offering a reduced price for a quick cash sale. You spot the bargain, and your attorney tells you title is fine. You buy the house at a great price for cash, but decline title insurance. Mr. Crook disappears with the proceeds of sale, and prepays six more months rent to ensure his escape.

Six months later, Mr. Jones returns to Atlanta to find you living happily in his house, and he legally has you evicted. Because you declined title insurance, you would lose the house and everything you paid to Mr. Crook.