You finally purchased your first home. You’ve unpacked all your boxes and settled in. And then, all of a sudden you receive a frantic phone call from someone claiming that they, in fact, are the true owner of your property. The tragedy is that legally the property may actually not belong to you. This is why title insurance is such an important aspect of the home buying process. Here is an easy guide that will help you understand all the important elements of title insurance to avoid having the misfortune of losing the home that you thought you owned.
The Basics Of Title Insurance
No different than other types of insurance, title insurance protects your ownership in a property. Title insurance protects you from various things that may have happened regarding the ownership and title of the property you are interested in.
Owner’s Insurance Versus Lender’s Insurance
There are two very different types of title insurance. One is an owner’s policy while the other is a lender’s policy. A lender’s policy only protects the mortgage company who is giving out the loan. On the other hand, an owner’s policy is one that protects the purchaser from possible title mishaps.
The Necessity Of Title Insurance
Many people wonder if title insurance is a necessity. In fact, it is. Since most lenders will only give out a loan unless the homebuyer purchases a title insurance policy. Lenders will require homeowners to purchase a lender’s policy but not an owner’s policy.
An owner’s policy is still a good idea to purchase. Because a lender’s title insurance policy only protects the mortgage company, not your interest in the property, you want to make sure that your personal interests are also protected. Therefore, investing in an owner’s property will protect your vested interest in the property from previous title mistakes.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.