For new homebuyers, title insurance can be a confusing topic. After all, with so many costs associated with buying and closing a home, you want to keep an eye on the bottom line and know what every cost covers. So when you see the cost of title insurance on your closing costs, you want to make sure it’s worth the investment.
Title insurance: peace of mind when you buy a home
Buying a home is among life’s most exciting and expensive moments. In most cases, the keys are in your hands at closing and you and your family can start planning the big move. But sometimes issues can arise, even years after you’ve lived in your home. There are numerous shocking stories about an owner learning that their property has ownership or lien issues that are unresolved. The result can range from losing part or all of your investment in your property.
It’s important to recognize that a lender’s policy protects your mortgage lender’s investment. To make certain you and your family are protected, you’ll want to secure an owner’s title insurance policy, as well.
Here’s how title insurance protects you and your investment
- Title insurance companies fully investigate the history of the property. This means the title company does an exhaustive search of public records to determine whether there are any title defects, such as liens, undisclosed owners (such as a separated spouse who did not agree to sell), encumbrances, fraud, pending legal action against the property, clerical errors, forgery, outstanding mortgages and more. In many cases, title defects may be minor and easily rectified—such as a low-balance second mortgage the seller forgot to close out. In cases where the defects cannot be resolved, you can be grateful they came to light before you took ownership.
- Title insurance protects your property rights for as long as you or your heirs own the property. Let’s face it, an investment in a property is an investment in the future of your family. As long as you or your heirs own the property, you will be protected as long as you have owner’s title insurance.
- Title insurance is a one-time investment. Think of all of the expenses you pay on a monthly basis…it’s overwhelming. For a one-time fee, typically a fraction of a percentage point of the value of your property, you’ll have the peace of mind that comes with knowing you are protected as long as you own the property. That’s right. You will only need to purchase title insurance again if you purchase another property.
For every buyer, protection is essential
This is the home where you and your family will celebrate birthdays, welcome new little ones, mark milestones like new jobs and the start of school, and gather around the table every night. Title defects can turn that world upside down.
Some things are just far too precious to leave to chance. By selecting a title company you trust, and protecting your investment with owner’s title insurance, you can rest assured you will enjoy your new home, and all the joys of life that happen within it, without a moment’s worry about title problems.