No matter if you happen to be buying a brand new home or an existing one, title insurance is there to help protect the title to your humble abode against any risks that are covered by whatever policy you have. In fact, title insurance is a policy that comes in two forms: a lender’s policy and an owner’s policy. Here is what you need to ultimately know about title insurance including the basics and how title insurance can protect homebuyers in the long run.
The Basics Of Title Insurance
For title insurance, these are the two different types that people own. First, a lender’s policy protects the lender’s interest in the property. Lenders are either banks or mortgage providers who have significant financial interests in the property you are buying. Second, an owner’s title insurance policy helps to protect the homeowner themselves. Title insurance will protect you, as the homeowner, against any unknown defects that could cause financial loss.
When it comes to a title defect, there are a lot of things that could go wrong that will require the need of a title insurance policy. One of the more common risks associated with buying a home is having a lien against the property. Liens serve as security for the payment of an obligation like a mortgage or a judgment lien for an unpaid court judgment. Failure to pay any of these (and many more) can result in a lien on your home. If this happened to the owners of the home before you, there could still be a lien out on the property that would affect your title to it. Other risks include easements, building or use restrictions, and claims.
At the end of the day, having a title insurance policy is important. If you want to protect your interests, an owner’s title insurance policy is the best way you can ensure that your home is yours, no matter what type of hidden defects may be uncovered later on.
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+.