The Importance Of Deeds And Title Insurance


There is a lot to understand when it comes to deeds and title insurance.

Deeds and Title insurance are both things that people know they need, but almost every prospective or current homeowner couldn’t tell you exactly why. While deeds and title insurance can both seem intimidating and complicated, they are much more straightforward than they initially seem. Here are some of the basics on why deeds and title insurance are so important.

Deeds 101

Deeds are used when purchasing or selling a property to transfer the property. Depending on the circumstances of the property transfer, you might need a different type of deed. Warranty deeds are the most common type used in property purchasing. If a bank is selling a property, a special warranty deed is typically required. There are several other uncommon types of deeds used when needed. All deeds have to be in writing and signed, notarized, and feature words of conveyance.

Title Insurance 101

Title insurance is absolutely essential when you are purchasing a home. It protects you and your lender from the chance that the property was not actually the sellers to sell. While title insurance is typically never needed, the costs incurred when it is needed are absolutely catastrophic. Just like you have car insurance but hope to never be in an accident, you purchase title insurance and hope that you never need to use it.

Why Do You Need Title Insurance?

What’s the worst that could happen? A lot! A seller might attempt to sell you a home that they don’t actually own. More common issues include sellers trying to sell the home without permission of everyone on the deed. This is very common when couples or siblings purchase homes together without realizing that they will need both signatures to sell it, even in the event of divorce or a falling out. Title insurance protects you from the financial impact of these devastating situations. Title insurance will help to make sure that you are the true homeowner of your new home and prevent any mishaps from taking a toll on your finances.

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+.

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