Buying a home is challenging enough, but understanding all of the language associated with the real estate process can make it doubly daunting. Understanding the differences between title insurance, title searches, and more can become overwhelming. We’ve collected a few key terms to know and understand before purchasing a home, to help you get a better grasp on the home title insurance process.
The Title Search
Early in the home buying process, a title search is conducted. A title search is done to uncover any potential issues that could hinder or limit your rights to the property you plan on purchasing.
The Home Title, Explained
At its core, the title is the right to own or use the property that you have just purchased. A title can also establish any potential limitations on your property rights.
The Closing Process
The home closing process is the final step in any execution of a real estate transaction. As a result, buying a home will always conclude with the closing process.
Why You Need Home Title Insurance
There are a variety of reasons why home buyers need title insurance. But, first and foremost, home title insurance will protect home buyers and mortgage lenders against any potential defects or issues associated with the title whenever there is a transfer of ownership of the property. If a title issue does arise, the title insurance company will then be responsible for paying specified legal damages, depending on the specific title insurance policy you chose.
Home title terms can be confusing for many, but taking the time to understand these terms makes the home buying process more manageable. Understanding, for instance, the benefits of home title insurance can then inspire you to invest in a one-time fee for title insurance, which can save you thousands of dollars in legal fees if any issues were to arise with the title later. Knowing what your home title communicates and how to defend it is a crucial part of purchasing your new 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+.