Title insurance will protect you against unexpected issues that arise after closing on a real estate purchase, such as errors in public records, undiscovered liens and forgery.
These issues could compromise both your ownership rights and lender liens on your loan, which is why home buyers and mortgage lenders almost always require title insurance for home purchases or refinancing loans.
Protects You From Unexpected Losses
Purchase of property can be one of the largest financial investments you ever make, so it is wise to protect your investment by assuring a marketable title, free from legal challenges that might impact ownership rights and cause unexpected expenses and possible loss. Title insurance provides both mortgage lenders and homebuyers peace of mind at a one-off premium cost.
An experienced title search professional will identify issues that could impede the validity of your property ownership, and if any are discovered they’ll be resolved quickly so as to ensure an easy closing experience – and limit future legal challenges to sell with confidence.
Lenders and homebuyers both require title insurance before closing on a property. Lender’s policies protect financial interests in case there are hidden title defects; while owners’ policies provide coverage as homeowners typically for as long as they own their home.
Imagine that someone previously owned your property died without leaving any heirs behind and the state sold it, only for one of your neighbors who bought the land afterward to claim that they have an easement or right-of-way on part of your land. If title insurance had been in place at that point, it would pay your legal costs associated with this dispute and reimburse any value loss in your land.
Title insurance policies also contain exclusions for issues not covered, such as unpaid taxes or liens placed by local governments on properties they insure, but most of the premium dollar goes toward search examination, curative work and final policy issuance; only 20 percent is set aside to cover potential future claims that could arise.
Title insurance provides peace of mind and ensures the protection of your investment, making it a worthwhile expense.
Prevents Liens From Attaching To Your Property
Title insurance policies protect homeowners against any claims against their properties, such as unpaid debts owed to contractors and unpaid liens placed by contractors and creditors on properties owned by previous owners, improvements made after purchase or even modifications by previous owners that encumber it financially. They also cover any unpaid property taxes or any liens attached due to violations of local, state and/or national regulations and ordinances; providing buyers protection from financial loss associated with issues that go undetected at closing that would otherwise become their responsibility to resolve.
Most people only purchase real estate once in their lives and it is one of the biggest investments they will make. Should these purchases be compromised by hidden problems that threaten legal ownership rights, the financial consequences could be devastating; title insurance protects against this risk and makes an invaluable addition to any homebuyer’s investment portfolio.
Title companies typically utilize public records to determine the condition of a property’s title, searching through documents filed in county, municipality, city and other government offices. While searching public records can provide insight into many issues a title company cannot detect (such as judgements against sellers or unpaid taxes or rights like easements), title insurance protects lenders as well as owners from these risks by insuring both.
Purchase of title insurance ensures that a title company will work to resolve issues before closing on a property, by filing documents with local courts to ensure there are no lingering matters affecting a new ownership transfer. It’s crucial that when buying real estate you work with an established and trustworthy title company. Investing in title insurance policy provides peace of mind knowing you own solid title to your investment property for as long as you own it!
Prevents Foreclosure
From a buyer’s standpoint, title insurance provides peace of mind in knowing they’re purchasing property with clear and marketable titles – without it they may find themselves facing costly legal battles and potential financial losses due to unexpected liens or encumbrances on their title.
Title insurance provides both lenders and borrowers with financial protection against financial loss resulting from errors in public records or issues with ownership chain, including disputes over property boundaries. Often times title insurers will cover legal expenses to help resolve these disputes as well as cover any potential losses caused.
Title insurance can help to guard against another risk: any outstanding liens from previous owners that were not settled at the time of sale. These can range from unpaid taxes or contractors who did work on the property without receiving payment; title insurance protects new homeowners from becoming responsible financially, thus helping prevent forced sales or foreclosure proceedings from taking place.
Title insurance policies offer numerous protections, with optional endorsements to provide even greater coverage – these could be for environmental liens, restrictions from easements or more depending on the circumstance of each transaction. Having additional options can be especially advantageous to buyers depending on your situation.
Title insurance is an indispensable element of real estate transactions and should be mandatory when borrowing through mortgage loans. It protects both lender and buyer from issues arising during or after the sale, and facilitates an uninterrupted transition of ownership.
When buying or refinancing a home, be sure to contact an Old Republic Title representative for information about how title insurance can assist in the transaction. We can walk you through each step and ensure all your questions are answered before closing on your loan or mortgage agreement.
Gives You Peace Of Mind
Purchase of a home can be both thrilling and daunting; trying to understand all of the unfamiliar terms such as chain of title, closing costs and title insurance may cause considerable strain and anxiety for buyers. Title insurance provides buyers with peace of mind that their property will sell or refinance without unexpected complications that might arise when selling or refinancing is underway.
Even after conducting a comprehensive search of public records, title professionals cannot always predict all issues or defects that could surface due to various legal matters affecting a property’s legal ownership – back taxes, conflicting wills and more can wreak havoc with legal ownership of property rights; these “title defects” can result in liens on your property or restrictions on its usage; title insurance provides protection from these defects for as long as an owner owns their home.
Policyholders also have the freedom to select their own title insurance provider and policy type from a wide selection of available policies. Most notably is a lender’s policy required as part of a loan, though there is also the option for an owner’s policy covering the purchase price plus providing extra safeguards such as “duty to defend”, in which title insurer will hire attorneys and cover associated costs to defend homeowners from legal claims that arise against them.
Benefits of title insurance coverage are numerous and can help avoid expensive legal disputes in the future. A title policy requires only a one-time charge that will last as long as you own your property; unlike other forms of coverage which require ongoing premium payments. Title insurance should be part of any real estate transaction – for more information on how to obtain one contact your local title company today; they’ll be happy to guide you through every step!
