For many people, buying a home is one of the single most significant purchases of their life. When you purchase a home, there are several types of insurance coverage you are going to want to buy, to ensure the protection of your property and family. However, while many people are aware of the benefits of homeowner’s insurance or flood and fire insurance, and are quick to buy them, fewer people are aware of the importance of title insurance. Buying title insurance is perhaps the most important coverage you can acquire, as it can protect your right to claim ownership of your home. Read on to learn more about the importance of purchasing Maryland title insurance.
Protect Your Large Investment
As noted above, your Maryland title insurance can protect the ownership of your home by protecting your title. A property title is a document that proves your right to own and occupy the property. There are a variety of title hazards, however, which may arise and challenge your ownership of the property, and title insurance protects you against these hazards. Fortunately, while other home insurance is paid for every year, title insurance is purchased once at closing.
Two Types of Maryland Title Insurance Offer Two Benefits
The two basic types of title insurance are lender or mortgagee protection, and owner’s coverage. Most lenders require title insurance as security for their investment in real estate. Owner’s title insurance can last as long as you, the policyholder, or your heirs have an interest in the insured property.
What Your Premium Pays For
The reason most people acquire title insurance is to eliminate risk. Title insurance gives the policyholder the best chance at avoiding title claims and loss of money or property. This assurance is provided by the title company, which searches public land records related to the real estate concerned. This search is conducted to find any documents which could create concerns regarding property ownership. These documents can include:
- Deeds, wills, and trusts that contain improper phrasing or incorrect names
- Outstanding mortgages, or liens against the property because the seller has not paid their taxes
- Easements allowing construction of a road or utility line
- Pending legal action against the property
By paying your Maryland title insurance premium, you are paying for this important title search service as well as the work that goes into correcting any defects.
Extensive Title Insurance Protection
Even after a thorough title search, some title hazards may still arise after you have closed on the property. These surprise title hazards can include:
- A forged signature on the deed
- An unknown heir of a previous owner who is claiming property ownership
- Instruments executed under an expired or fabricated power of attorney
- Mistakes in public records
Maryland title insurance can still work for you by providing financial protection against these and other title hazards. The title insurer will work on your behalf by either defending against an attack on the title, perfecting the title or paying valid claims.
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.