Are you thinking about buying a home? Before closing, make sure you have title insurance. We can’t stress enough how important this is.
So, what exactly is title insurance, and what can it do for you? The word “title” in this case refers to the legal possession of a property. To put it simply, title insurance offers you protection for your property.
Part of the closing costs when you take out a mortgage is a premium with a one-time fee whose policy protects the lender. It’s also possible to protect yourself by purchasing owner’s title insurance. Although it’s not required, we absolutely recommend it.
With title insurance, you’re protected against claims from third parties on your property that might arise after you’ve closed but didn’t appear in the original title search. To put it into context, an example of a third-party claim would be a construction company seeking payment from you for unpaid work when the property was still under the previous owner.
This is just one of the many situations you can avoid if you have title insurance, but there are plenty more. Keep reading to learn some of the top reasons you should get a title insurance policy.
Why do you need Title Insurance?
For recordkeeping
First and foremost, title insurance establishes your legal status as the current owner.
It ensures that your name is recognized as the registered owner of your property in both state and local jurisdictions.
In case an unknown heir is discovered
Imagine finding out months later that the home you bought and live in belongs to someone else.
Most times, the owner you buy the house from is completely unaware of this. It’s also possible that the heir might not even know they received this inheritance until many years later.
To protect yourself from debts owed by previous owners
You never know if the previous owners were responsible billpayers. If any debts have not been paid off, banks or other lending institutions can place liens on your property. Yes, even though it’s not yours!
It’s important to note that this is an issue that tends to happen with foreclosed properties.
To avoid being sued from pending lawsuits
While it’s usual to run a background check on your potential home to find out if there are any active disputes, sometimes things can get overlooked. A title insurance policy is one of the best ways to protect yourself and avoid getting tangled in a lawsuit that you have nothing to do with.
It makes it easier to sell your home later on
And finally, if one day you decide to sell your home, title insurance can help make the transaction go so much smoother. With title insurance, the selling process is a lot more simple and less stressful.
Partner With Us
We are an attorney-owned full service title and escrow company providing services to the entire state of Florida. We combine superior customer service with the legal expertise of our real estate attorneys and industry professionals to create a stress-free, simplified closing process – all while offering industry-leading rates.
Whether you’re buying, selling, or refinancing, we’re committed to delivering an exceptional closing experience. Contact us today to set up an appointment!
