Have you ever considered the possibility that you could lose your home because someone else legally has a right to it? This is something that can actually occur, but title insurance can protect homeowners from these sorts of issues. People often wonder whether title insurance is worth the cost, and here are a few reasons why it usually is.
What is My Risk?
While the actual chances of encountering a title defect are low, the possibility is still there. Issues like undiscovered liens and other disputes can put your ownership status in serious jeopardy. Without title insurance, you could end up losing the legal right of ownership to your home. With the wide variety of title defects that may arise, having proper protection for your legal ownership rights is essential.
A Common Title Defect: Undiscovered Liens
One of the most common title defects is undiscovered liens. A lien will give a person or entity an actual legal claim to someone else’s property until a financial obligation is fulfilled. In fact, for the majority of liens, they are usually a part of an agreement to purchase property. Liens traditionally help consumers take out a loan for something like a home or car. These liens help by providing security to creditors if those debts are not fully repaid. Since most homebuyers do not want to be responsible for paying off someone else’s debt, it can be challenging to sell a property that has a lien on it.
Owner’s Title Insurance Can Protect You
You may be wondering how an owner’s title insurance policy can protect your home ownership status. When you have an owner’s title insurance policy, you will be covered entirely against the consequences of title defects. Your title insurance policy ensures that your property rights are protected despite any future title defects that may arise, and that peace of mind is well worth the investment.
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+.