For most people their home is the biggest and most serious investment which they will make, and it is only natural to want some protection for this investment. Over half of all real estate purchases experience problems somewhere down the line, whether it be in the chain of title transference, or previous owners debts; title insurance can protect you and your investment from such problems.
What does the term title insurance mean?
Title insurance is much like any other insurance policy except it does not cover you for future hazards. This insurance covers you, the seller, and the lender against damages and issues which were already in existence at the time of purchase.
What does title insurance protect you against?
Title insurance, for just one premium, protect against breaks in the transference of titles, liens, defects in the property title, encumbrances, another person claiming ownership, improperly recorded documents, fraud, forgery, encroachments, and easements. Much like other forms of insurance it all depends upon what you include in your policy.
Title insurance protects you, your lenders, and the seller against the issues and costs than come with such issues. When you consider all this it is very clear that while this insurance is not a necessity for real estate purchase it is very smart to consider it!
How does it work, then?
A notary, title agent, or your attorney can start a title search from the moment that an offer is made on any property, and they will prepare a preliminary report for you to consider and approve. If you decide to go ahead and confirm the report demands will be paid and fund disbursed before the actual policy is created. Once the policy has been created you know that your property (and your investment) is safe.
We would highly recommend that you consider title insurance when you’re thinking of investing in a property.