Title insurance is an essential component of home-ownership. It protects you from claims against your title, which could result in significant financial loss and even the loss of your home. Because of this, you are required to purchase lenders title insurance for your lender, so they are insured against any claim. However, you are not required to buy title insurance for yourself, the homeowner. While this option is on the table, it carries with it a lot of risk, and is not advisable. Here’s why.
What Happens if I Don’t have Title Insurance?
If you don’t purchase title insurance, you are not protected from a claim against your title. You may think, well, the title company did a thorough title search and nothing came up, so I’m in the clear right? The answer is, not necessarily. While a title search can reveal potential title issues with your property, there are some things that it simply cannot find. These are mainly human errors, such as erroneous filing due to similar names, or incorrect recording of data. It may also be a result of fraud carried out by a previous owner which went undiscovered.
Whatever the case, the fact is that even if a title search comes back clean, there is still the potential that a claim could be brought against your title at some point in the future. When this happens, you will be forced to pay the legal fees out of your own pocket and engage in what will most likely be a lengthy and expensive legal process. If you’re lucky, you will come out of it with your home, but it is possible that a title claim could result in the loss of your home. It is for this reason that purchasing title insurance for yourself, the homeowner, is so important. Protect yourself from title claims with title insurance in Baltimore.
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!