No matter whether you are purchasing a brand new home, an existing home, or you are refinancing a house you already live in, home title insurance can protect all homebuyers from any potential title problems. The two types of title insurance are an owner’s policy and the lender’s policy. The owner’s policy will protect a homebuyer’s property rights, while the lender’s policy insurance the financial investment of the bank or lender. Title insurance protects homebuyers and their lenders from potential financial loss that could come from a title defect. The primary benefits of title insurance for any homebuyers are listed below.
Title Insurance Protects Homebuyers From Common Title Problems
Getting an owner’s title insurance is essential when buying or refinancing a home because titles are often at risk for several issues, the most common being:
- Liens against the property that serve as security for a required payment from the previous owner
- Easements that have been created by contract
- Building or use restrictions contained within recorded plats, agreements, or deeds
- Claims arising from bankruptcy
Refinancing Homebuyers Are Protected
When you refinance your home, you are obtaining a new loan, even if you stay with your original lender. In this situation, lenders will often require a new title search and lender’s policy to protect their investment. However, homeowners don’t need to purchase a new owner’s policy because the one you bought at closing is good for as long as you own the property.
Title Insurance Has Enduring Value
The best part of obtaining an owner’s title insurance is that it is a low, one-time fee based on the value of your home. A home is one of the most significant investments you will ever make, and title insurance protects homebuyers from having to worry continually about their title or property. Instead, you can give yourself peace of mind for as long as you reside in your new home.
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+.