Buying a home is probably one of the most significant investments you’ll ever make. But what if, after closing the deal, you discover someone else has a claim to your property? It sounds like a nightmare, right? That’s where title insurance comes in.
Title insurance is a one-time policy that protects you from financial loss due to problems with the property’s title. These include:
- Unpaid property taxes or liens from previous owners
- Fraudulent deeds or forged documents
- Claims from undisclosed heirs or ex-spouses
- Mistakes in public records or surveys
Unlike other types of insurance that cover future events, title insurance safeguards you against issues that happened in the past. Additionally, it’s a one-time fee, which means you won’t be required to make monthly or annual payments. The protection lasts as long as you own the home.
What happens if you skip it?
You might be thinking that title insurance isn’t necessary because the title search came back clean. However, even the most thorough title search can miss things. For example, a previous owner might have unpaid taxes, an undisclosed heir could pop up or there could be a clerical error in the records.
Without title insurance, you’d be responsible for clearing up the mess, which could include paying legal fees, settling debts or even giving up the home. Title insurance acts as a safety net against such possibilities.
Don’t take costly chances with your prized investment
Title insurance is a small price to pay for peace of mind as a potential homeowner. Don’t let hidden issues turn your dream home into a legal nightmare. Learn more about how title insurance works and seek qualified legal guidance if you have any questions or concerns during the home-buying process.
