Title Insurance and why you need it
Title insurance is highly required by property buyers and even mortgage lenders since there will always be a transfer of property ownership and as such one needs title insurance that will protect against problems associated with title defects. That is to say, contact the title insurance company if a title dispute arises in the course of a sale because they will be responsible for the payment of specified legal damages and risks involved depending on the insurance policy agreement.
Title insurance is mostly for a homeowner or the lender that financed the mortgage for a property. This can be paid by the seller or the buyer of any property. Therefore, the homeowner purchases the title insurance, and also it can be purchased to protect the mortgage lender.
In all cases, title insurance is needed, which must be in a clean state this will help the buyer verify that the seller is the owner of the property in question and truthfully can sell without problems.
It is pertinent to buy this policy though it might not be compulsory for homeowners. Below are the reasons you need title insurance for your property.
- It makes your purchase safe:
You can be so sure about whom you are buying your property from especially if you are not using an experienced estate lawyer, the next alternative is to get title insurance in case of future disputes, and the company can bail you out.
- Problems are detected early:
Buying your title insurance first will help uncover issues associated with the title much earlier. Before the property is purchased, the title company will take it upon itself to be sure there’s no problem with the title.
- Low cost of insurance claims:
With the search done by the title insurance company, if the title company discovers no indicting charges, the price that is offered by the title insurance company would be low which would not have been so if there was no search.
- Solutions proffered before closing:
With the purchase of the title insurance, the title company will be able to search out if the following: outstanding mortgage, tax liens deeds, trusts with incomplete/incorrect names are all corrected before there’s a closing of the deal.
- Protection against fraud
Protection against fraud is a good reason why one needs title insurance. Discovering fraudulent or forged documents during the search will ensure the buyer does not fall into the hands of fraudsters at all.