What is It and Why Is It Important?
Whether you are buying a home or purchasing land to build a home on, title insurance is a must-have to protect this large investment you are about to make. Maybe you’re thinking ‘Well, what is title?’ and to that, we have your answer(s) below!
According to Old Republic Title, the definition of title is “A bundle of rights you receive when you purchase property.” Essentially, title is a legal document, created by a title insurance company that displays the legal ownership a person or persons has to a property. So, when you go through the homebuying process of purchasing a previously owned building or land, title ensures that it legally becomes yours and no one else’s.
As you purchase the property or land from someone else, this sequence of events that follows is the Chain of Title. Therefore, the review process is known as a Title Search. A title search is an early step in the homebuying process. There are moments when the title is clear and free of issues. But there are also times when there is a problem, also called a defect. If an issue with the title is discovered, the title professional(s) will resolve it. Once the search is finalized, the title company will provide a title insurance policy.
Problems such as outstanding mortgages/judgments as well as a lien against the property may be found during the search process. However, if you purchased title insurance, you are not at fault for these potentially pricey issues.
Now that you know the answer to this popular question, you can keep on keepin’ with your homebuying process. The market may seem to have some ebbs and flows, but just remember, no matter the market you’re buying your home, title insurance is a must. Protect your largest investment today by contacting our wonderful team today to get the process moving.