What’s title insurance, and is it even necessary? We always get this question from our clients. Well, title insurance is a unique cover that protects both lenders and homeowners from property loss or damage due to liens, defects, or encumbrances in titles. In case you are using financing to purchase a house, you’ll need to show your lender that you have a title insurance policy. Here are 20 reasons for buying a title insurance policy.
- Protects you against losses that arise from title defects
- A mortgage or deed in the chain of the title might be a forgery
- A claim can occur due to circumstances such as marital disputes
- Underage or incompetent individuals might have made the mortgage or deed
- A mortgage or deed might have been made by an individual whose name resembles yours
- Children born after the execution of the will might have an interest in your property
- A mortgage or deed made under the expired power of attorney might be void
- Titles transferred by heirs may be subject to federal estate tax liens
- Heirs or other individuals presumed dead might appear and lay claim to the property
- A judgment relating to the title might be voidable due to some problem during the proceedings
- By getting a policy, you eliminate delays that might occur when passing the property’s title to someone else
- A title insurance policy reimburses you for the entire amount of your covered loss
- The policy speeds up negotiations when you are ready to obtain a loan or sell
- A mortgage or deed might be voidable if it’s signed while the grantor was facing bankruptcy
- There has been a rise in the number of claims over the past 30 years
- There might be a problem while recording a document that acts as the basis of your title
- Title insurance covers court and attorney costs
- Most lawyers protect themselves and their clients by buying title insurance policies
- A mortgage or deed might have been procured through fraud or duress
- Title insurance policies are usually paid in full by the initial premium provided that you are the property owner.
If you are interested in learning more about title insurance or buying a policy, please contact us today.