You’ve gone through the negotiations and are about to close on a house. With all that out of the way, the title process might seem like an afterthought or an unimportant formality. However, getting a clear title is just as important as agreeing to buy the house in the first place. Otherwise, you could stand to lose a significant amount of money in the transaction.
Title insurance can protect your investment.
Title insurance can cover a number of things that you might be liable for upon assuming ownership of the property if something was overlooked in the transaction. This can include:
Title companies, such as ours, go through a rigorous process to ensure clear title for our clients. We check for issues with a title very carefully by going over all relevant public records of the history of the property. This includes any other potential claims of ownership, any outstanding money owed on the property, and more.
Because purchasing a home is such a major investment, perhaps the biggest you will make in your life, the financial risks of going without title insurance are significant. For example, your claim to the legal ownership of the property could be challenged by unknown heirs, or you could be on the hook for any liens against the property. Title loss is rather rare but very costly when it does happen.
Title insurance is generally not very expensive either, although rates vary from state to state. Compared to the cost of buying a home, title insurance is generally a small cost to cover, and unlike other types of insurance, title insurance is purchased for a one-time fee.
In essence, title insurance is worth every penny. It is a relatively cheap insurance policy that protects your hefty real estate investment from potential title errors and owner disputes. If you’re in need of title services of any kind, be sure to contact Beaches Title for professional assistance.