Understanding the Role of Title Insurance in Home Buying Process

Understanding the Role of Title Insurance in the Home Buying Process

Are you in the market for a new home? You probably spent a lot of time considering just what you can afford. You thought about home prices and what you might want to add to or change about your new home. Most buyers come pretty close to the top end of their budget when all’s said and done, that’s why so many question why you need to spend an extra thousand or so on title insurance.

Most lenders require you buy a policy for them but that doesn’t cover your needs as a homeowner. You home is likely one of your largest investments thttps://www.bntc.com/wp-admin/admin.php?page=wpseo_dashboardhat’s why you shouldn’t leave it unprotected.



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What Is Title Insurance and Why Do You Need It?

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Title insurance is a policy that gives you complete peace of mind that no one else can lay claim to your home. Most home buyers believe that is covered by the mortgage but it isn’t. Plus title insurance will protect your interests in court at no cost to you should another party lay claim to your property. The policy is in effect for the entire time you own your property. For a one-time payment, that’s a nice guarantee.

A title agent first culls public records to see if there are any outstanding liens, debts, or claims against your home or property. If there are, the agent will work to remove them and acquire the necessary documentation.

For instance, the current homeowner may have satisfied a tax lien on the property by paying off his/her bill but it wasn’t noted in the paperwork and appears to still be outstanding. The title agent will work with the current homeowner to get the necessary paperwork filed or amended so that payment proof is shown.

After performing his due diligence, the title agent would deem the title “clear.” Title insurance could then be issued. Once the title insurance is issued to you when you close on your home, you are protected from claims such as lost heirs or fraudulent sales.

For example, the person you bought the house from may have been married before. His divorce settlement could’ve stipulated that upon the sale of the home, his ex receives half. To avoid this, some people go to extremes by enlisting the help of a current significant other to pose as the ex-spouse.

If the ex hears of the sale and the new girlfriend posing as her in the sign-off on the paperwork, she may come back and file a claim on your home and property that would then leave you with exorbitant legal costs fighting for your home.

Not if you had title insurance.

If you had a title insurance policy issued, your interests are protected and your court costs are covered at 100%. Now that little payment up front doesn’t sound so bad after all, does it?

No one wants to worry about someone coming and laying claim to their home. No one wants to worry about how they will pay for such costly expenses. Title insurance means you don’t have to.

If you’re looking for a customer-focused title insurance company, contact Bay National Title Company. We’re here to answer questions and help you make informed decisions on your options.

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