Ever wondered why exactly you need title insurance? It comes in handy when things go awry during a real estate transaction.
Public Record Errors
Humans are not robots, therefore we are prone to making mistakes. Unfortunately, in real estate, those mistakes could come with severe consequences. Seemingly simple clerical or filing mistakes could come to haunt someone who is interested in purchasing that specific property. When a deed or survey is affected by a clerical or filing mistake, the costs to remedy the problem become exorbitant for the buyer or seller.
Previous owners of your property may have been terrible at keeping all their paperwork organized. Liens can easily be placed upon your property due to a previous owner’s debt even after a contract of sale has been signed. This becomes an even bigger issue with properties that are distressed or blighted.
While the chain of custody of title on your property might look normal, it is possible that there could be a prior deed out there made illegally. This could be a deed that was signed under duress, by a minor, by an illegal immigrant or even by a married person who is actually single. All of these situations could potentially affect any enforcement of prior deeds. A deed proves ownership, and if a prior deed that you were unaware of is enforced over the current deed you hold, you could potentially lose your ownership of the property.
When someone dies, typically the ownership of their property goes to their heirs. These could be people named in a will or through an intestate conveyance. Yet, those heirs may be missing or simply unable to locate. In these instances, family members will often find themselves fighting over the ownership of the property. Family members can try to claim their right in a property even after you have purchased it, making title insurance infinitely important to have.
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+.