Procuring title insurance is a standard step any potential homeowner should take before completing the purchase of any home. While it may seem like a minor detail in the midst of a complicated transaction, title insurance is actually of critical importance for homebuyer protection. Title insurance protects home buyers and lenders from repercussions of the possibility that the seller did not actually have ownership of the house and property, and therefore could not actually legally sell it. While this may seem like a distant possibility, and not something to worry about, without this important homebuyer protection you risk losing the home you have fallen in love with due to technicalities.
Without Title Insurance, You Run The Risk Of Losing The House
It may seem strange and unlikely that someone may try to sell a house they don’t own. This is uncommon, and more often than not technicalities like these come into play due to ignorance surrounding the legal particulars of owning or selling a home, rather than someone attempting a scam. If you have ever tried to buy or sell property, you know that many of the stipulations and laws surrounding ownership are incredibly complex. It is not unheard of for the everyday person, who is not well-versed in legal jargon and stipulations which are not always apparent, to make mistakes.
For example, if you buy a house from a single person, without realizing that their ex-spouse still co-owned the property and hadn’t signed off on the sale, and you do not have title insurance, you will not have any legal claim to that house. Or the seller may have even inherited the house in an out-of-date will, without realizing that there had been changes to that will, meaning that they had no legal right to sell the property. Without title insurance, these errors fall on you.
Homebuyer Protection Also Eliminates These Risks
Not every title issue involves the whole house and property. Liens may have been filed against the house in order to settle the previous owner’s debts. Typical debts which result in this include taxes, child support, and contractor’s fees. Debts such as these also stick to the house until it is legally sold or foreclosed on. Title insurance adds assurance to a legal sale, and will protect you from this unfortunate situation.
About Colony Title Associates
Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings in Washington DC and the Delmarva area every year. The founder Tee Tillman has over 23 years of 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 Maryland area. If you have any questions concerning issues thattitle insurance protects you from, feel free to contact us at 410 884-1160 or visit ColonyTitle.com today!