It’s hard to imagine the possibility of losing your house due to a title defect or issue. However, the reality is, it can happen. Most of the time, the solution is easy — having an owner’s title insurance policy. Here are some important things to know when it comes to why an owner’s title insurance policy is worth the cost.
Purpose of Title Insurance
Ultimately, title insurance is designed to insure purchasers of real estate and mortgages against any potential defective titles, liens, and encumbrances that may arise. Protecting purchasers is the ultimate aim of an owner’s title insurance policy. A title insurance policy — specifically an owner’s policy — is created to protect a homebuyer’s ownership rights in the real estate property they are looking to own. Title insurance differs from other types of insurance. While the functions are the same, it’s the actual purpose of title insurance that is markedly different from others. With title insurance, homeowners and buyers alike are protected against any past acts that may hinder their ownership rights to real estate.
Why People Need Title Insurance
When purchasing a brand-new home, homeowners are often overwhelmed with the entire process. As homebuyers approach the big closing day, some details may get overlooked. One such key feature that is commonly overlooked involves title insurance. Purchasing a title insurance policy for your home could end up being the single most important thing you do for your home.
What Exactly is a Title?
While it is easy to understand why title insurance is important, sometimes, home buyers forget to examine what specifically a title is or does. A title is simply the tangible evidence that shows people have the rights to own and possess the property in question. However, if that right can no longer be established, that is precisely where title insurance can step in and help retain your ownership rights to your 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+.