For first time home buyers, the purchasing process can feel long and confusing. Many components of homeownership may be a surprise to new homeowners, including title insurance. This crucial but sometimes underrated component must be accounted for when purchasing a new home. Why? Title insurance provides new homeowners with extra protection of their title and their right to claim their home as their own. Read on to learn more about how you can acquire title insurance and what it can do for new homeowners.
What Title Insurance Is
Title insurance protects you, the homeowner, and your lender if the home seller does not have free and clear ownership of the property. This can happen for several reasons, often unknown to the seller.
When you purchase title insurance, a title agent searches public records first to ensure that the seller owns the property. They look at deeds, transaction records, wills, and more to alert all parties of any discrepancies. These discrepancies can include undisclosed heirs, liens, unpaid taxes, title defects, or other legal concerns that threaten homeownership. If any issues are discovered, your title agent will help you clear them before the home sale.
Title insurance functions after the transaction is complete as well, in case any ownership concerns appear in the future.
How Title Insurance Benefits You
Title insurance is critical for protecting your investment in your new home. If any legal claims are made for rightful ownership of your property, your insurance can help you pay for the legal fees required to fight the claims.
Title insurance also helps you cover the costs of losses and damages from liens or title defects. You are also protected from forgery, heirs that claim the property, and any other legal concerns.
Without title insurance, you would be held liable for issues that occurred with the property before you even owned it! These issues can cost thousands of dollars to resolve, negatively impacting your finances. This could even result in foreclosure or the loss of property. With title insurance, you will discover any issues before they become your responsibility. If any problems are somehow missed, your insurance will continue to protect you as long as you own your new home.
How to Acquire Title Insurance
Homeowners can acquire title insurance soon after the purchase agreement for the house is signed. Your closing agent will initiate this process for you and help you choose a title insurer to underwriter your policy. Title insurance is a one-time fee, though the seller may pay this as part of the closing agreements.
After the payment is made, the title search begins, and you have a chance to address any concerns you have before closing the sale. With a title search and title insurance, you can purchase your new home with confidence.
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, and LinkedIn.