Title insurance is created to protect homeowners and mortgage lenders from any title defects on a home. But what if you’re paying for your new home in cash, with no loans or lenders required? Title insurance may seem like an unnecessary expense you can overlook. However, it is still recommended for homeowners to purchase title insurance even during a cash transaction. Title insurance is a crucial tool for protecting your investment and savings at the time of purchase and in the future; read on to learn how title insurance protects all homeowners.
Protection From Inaccurate Title Reports
Title reports conducted by title companies contain the legal description of your property. This includes location, boundaries, taxes due on the property, and any liens at the sale time. These debts must be paid and removed before a home sale can be completed. Any title document inaccuracies can make it impossible to determine whether a title can be legally transferred, which stalls the home sale and costs you extra money.
Protection Against Defective Titles
Unresolved liens or debts placed on a property can render a home title defective. A defective title can stall your home purchase indefinitely. Typically, the current owner must pay the lien before the sale can continue, but if they cannot do so, or if your home is purchased at a foreclosure or auction sale, you may become responsible for payment. Acquiring title insurance can help you cover this extra expense if it should come up, and do what you need to complete the sale and claim your new property.
Coverage for Future Claims
Title insurance does more than protect your investment during the home sale, however. It can also be used after the sale is completed to help you address any unexpected claims. There are sometimes instances in which new information is discovered after the sale. These items may not be a part of public records—things such as forgery, impersonation, or other unknown errors—but they will potentially affect your homeownership. You will be responsible for personally covering any legal expenses required to amend these issues without title insurance.
Title insurance is a crucial component of homeownership because it provides you with peace of mind. You know if an issue arises with your title, you will have the professional and financial support of a title company and title insurance.
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.