Why Title Insurance Is So Important For Home Buyers
Obtaining title insurance is a standard step that home buyers need to take before they close on a home purchase. It is critical for a home buyer to get title insurance since it protects both the lender and the buyer from the possibility that the seller doesn’t have clear and free ownership of the property and home, and therefore, does not have the legal right to transfer full ownership over to the buyer. Although there is a fairly low chance that you will need to call on title insurance for coverage, the value of what you could stand to lose when you don’t have coverage is very high – in fact, you could end up losing the house itself.
How To Obtain Title Insurance
Your closing or escrow agent will get the process started of obtaining your title insurance port charlotte fl after you have signed your purchase agreement. You will probably need to pay a one-time fee of approximately $1,000 to get title insurance.
If You Didn’t Get Title Insurance, What Could Happen?
There are several things that could go wrong. The most serious problem could be that someone could attempt to sell you a house that she or he does not own. However, there are other issues that are less devious but more complex. For example, a seller could have co-purchased a home with a brother ten years ago that he has not spoken to since and not realize his brother’s signature is needed in order to sell the house. Or a seller may have inherited the house but it turns out that the terms of the will are out of date and the house has been left to someone else.
There can also be liens filed against a house where agencies or individuals have legally claimed through public records the right to be paid from the property sale’s proceeds to settle an owner’s debt with them. These debts could include things like contractor’s fees, child support, and taxes. In all of these types of situations, title insurance can help.
Protection Provided By Title Insurance
An extensive title search of a property is required by title insurance. The search will help to minimize any potential liabilities by discovering possible title issues. Title insurance also defends a property owner against any litigation challenging the legality and validity of a new property owner. That is why obtaining title insurance is so important when purchasing property.