What Is Title Insurance And Why You Should Purchase A Policy

title insurance

Understanding the importance of purchasing a title insurance policy is crucial for every homeowner!

When surveying homeowners who went through legal headaches or purchasing difficulties through the process of their home sale, there is almost always one common denominator—they didn’t protect their investment with title insurance. Title insurance is one of the most essential things every home buyer needs to do to ensure that their home purchase does not come with any legal (or financial) strings attached.

Title Insurance 101

Title insurance can be purchased on behalf of the owner or the lender. Both are needed for the most secure protection possible. Title insurance provides you with assurance that you are the fair and true owner of the property and that the property comes to you without any defects in the title. All defects should be disclosed to you before purchasing the property.

In the title insurance process, Colony Title will complete a title search. This reviews records for the county in which your property is located to trace the chain of ownership. Once the title search is completed, you will receive a guarantee from your title insurance company that the title belongs to you and that there are no defects.

Why You Need Title Insurance

Why do you need car insurance? To take care of things in the case that there is an accident. Why do you need health insurance? To take care of bills in the case that you become ill. Why do you need title insurance? In case there are issues with the title of your home that you are considered legally liable for. If your title is challenged without title insurance, you will need to take care of legal fees. Even worse, if your defense of the title fails, you could lose your property altogether. If the seller of the home was divorced, bankrupt, or agreed to an easement, title insurance will prevent you from being liable for legal issues.

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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