What Does Title Insurance Do?
We have already covered the definition of title and explained title insurance, which leaves us with what does title insurance do exactly?
Behind the Scenes Work of Buying a Home
When you are buying a home, it is imperative that you purchase insurance on the property’s title. By doing so, a title company conducts a thorough search and looks for defects or other hidden issues with the property before it’s officially yours.
It might sound like a lot of work, but that’s what the professionals are for! Because trust us, it is an absolute headache when someone else’s defect or issue becomes your problem. It can also become your problem financially.
How Does It Help?
There are chances where a title defect may not be discovered, or it is undiscoverable through the title search. That could lead to a problem with the title of the property.
This is where the policy helps to cover the cost of the issue – also known as a title claim. Some defects can be complicated and costly, which is why we highly recommend purchasing a one-time fee title insurance policy.
Potential Liens and Defects
Examples such as the prior owners not paying property taxes, construction bills, or even the mortgage can show up in a title search. Things that you definitely do not want to be responsible for after buying a home.
What does title insurance do? It protects your property rights and gives you peace of mind. Thus, making you not responsible for paying for those unpaid liens. This is worth its weight in gold when it comes to the potential unknowns of the title on a property.
Contact your local title company today to protect your largest investment, your home!
Want to know more? Check out our Resources section for an array of title, real estate, and homebuying knowledge and information.