What is Title Insurance? It’s peace of mind, a protection for your investment, and good sense. Would you drive a car without having car insurance? Would you go through life feeling safe if you didn’t have medical insurance? Title Insurance is every bit as crucial to a buyer or lender as homeowner’s insurance is to a homeowner.
In any real estate transaction, obtaining a title search and providing title insurance is one of the most important steps that buyers and lenders take before going to closing. Reason being, Title insurance protects both buyers and their lenders from potential risks not always found in a title search.
The real estate process is as simple as it is involved. When a piece of property is bought or sold, a record of that transaction is filed. Anytime a change is made concerning the property another record is filed or, should be filed in any case. So, when a buyer is interested in purchasing a home, or a commercial property, a title search is performed. The goal of the title search is to find any and all paperwork on said property in order to assure proper ownership, determine existing liens, etc. After completion of the title search the underwriter can then determine whether or not the property can receive title insurance. Easy peasy, right? Not all the time.
Potential problems with title to a property can involve pasts human error, filing errors, forgeries, and undisclosed heirs not discovered in the search, etc. Such issues have the potential to cost a buyer a lot money, time and aggravation down the road. With Title Insurance the buyer has the confidence knowing that, not only was an in-depth investigation and search of public records for the property performed but, they have the further assurance knowing they’re insured for financial loss that could result from title defects that were unknown at the time of closing.
Just as in life, when it comes to owning property, the unexpected sometimes happens. Title Insurance can protect you from the unexpected. Any questions? Don’t hesitate to contact one of our staff today.