Title insurance is one of most important purchases you can make during the process of buying a home. And in fact, you’ll have to buy title insurance for your lender. While you’re not required to purchase it for yourself, it is very beneficial to have and may end up saving you a lot of money in the event that a discrepancy with your home’s title leaves it open to a claim. Here’s why you need title insurance in Baltimore.
Do I Need Title Insurance in Baltimore?
The purpose of title insurance is to protect your property against claims on the title by a third party. So how does this work? How could anyone claim to own a property that you bought? There are a number of different ways this could happen, all of which point back to a problem with the property’s title at some point during the history of its existence. The title could have been improperly filed, or a previous owner could have committed forgery or fraud to obtain ownership. The title may have changed hands improperly when the property was lost or sold. These are just a few of the possibilities, but essentially, there are many things that can go wrong with a property’s title.
When title problems occur, they can come back to be your problem when you gain ownership of the property. If the title is not clean, a third party can claim ownership of the property, costing you a considerable amount in legal fees and possibly even ownership of your house.
Title insurance protects you from these claims. If you choose to purchase title insurance for yourself, the Baltimore title insurance company will conduct extensive research into the history of the property’s title, called a title search or title examination. This will reveal potential problems with the title, before you even assume ownership. However, the title search cannot uncover all potential problems. Therefore, title insurance serves as protection against these problems, and protects you from claims against your title. Overall, while you might not be required to purchase title insurance for yourself, it’s highly advisable to do so.
About Colony Title Associates:
Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the Baltimore area. If you have any questions concerning issues that Baltimore title insurance protects you from, feel free to contact us at 410 884-1160 or visit ColonyTitle.com today!