Title Insurance Protects Your Investment
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Purchasing a home is probably the single biggest investment you will make in your lifetime. Before you close, you will want to know that no individual or entity has a right, claim or lien to the property.
A title insurance company ensures that your new property is free of expensive encumbrances and other legal obstacles.
You pay the title company a single premium which includes the cost of verifying clear title and covers you in case some fault is later discovered in the title.
The title insurance company searches the title history of the property. Through its research, the title insurance company can almost always identify any title problems that may arise and have these problems cleared-up before you close on the property.
Real Estate law is extraordinarily complex. Title companies make sure that all the T's are crossed and all the I's are dotted so you don't end up with a clouded title and legal problems. Your owner's policy will describe the property and outline any recorded limitations on your ownership. It will also cover what the title company is responsible for. Title insurance covers the following:
- Contested title — Someone, usually a previous owner or occupant, claims they still own the property or have not given up their claim. In this case, the title insurance company will defend your title at no expense to you.
- Defective title — "Defective title" covers any number of problems with the title to your home. It can even include a "contested title". Defects are rare, but they can be very difficult, making the property inaccessible, unbuildable, or unsaleable. Many other complicated problems define "Defective title." The title company will discover these problems, or should they miss them, insure your loss up to the amount of the policy.
Liberty Home Mortgage can walk you through the pitfalls of getting a mortgage. Give us a call: 9724662551.