An unsuspecting family just bought a home from a seller who took out a loan on the property. Another homebuyer doesn’t know there are forged signatures in the chain of title. A third is unaware that an ex-spouse of their home’s past owner is about to resurface, claiming rights to the property. And another just found out there are easements on their property that were not disclosed during the home buying process.
Homes have histories. Properties have a past. And unfortunately, 20 percent of homebuyers do not protect themselves from this reality because they don’t secure owner’s title insurance.
Home owner’s title insurance: securing your peace of mind
For any of the above-mentioned scenarios, homeowner’s title insurance would have protected the buyer from these unfortunate circumstances. How does homeowner’s title insurance protect you? Let’s take a look.
How title insurance protects a property buyer
In most cases, lender’s title insurance is required by the mortgage lender, so they have peace of mind that their assets are protected when money is borrowed to purchase a property. But there is a second type of title insurance that protects a property buyer, as well. After all, banks aren’t the only ones with skin in the game. To protect any equity you have invested in the property, you will want to secure owner’s title insurance. Owner’s title insurance protects you from legal and financial issues that can arise: veritable skeletons in the closet of your property’s past. Without title insurance to protect you, you could lose your property rights.
When your property is covered by owner’s title insurance, a title professional conducts an in-depth examination of public records—far more complex and time consuming than what the average person would want or be able to conduct. During that process, the title professional looks for title defects or issues related to the property title. Among many issues, those might include:
- Undisclosed persons with a claim to the title, such as an estranged spouse or an heir
- Paperwork errors
- Easements and liens against the property
- Forged signatures
Many buyers are unaware that these risks exist and in fact can surface at any time. That’s perhaps why 20 percent of property buyers don’t get owner’s title insurance. It’s a quick decision that could have devastating repercussions down the road.
Title insurance: a clear choice for peace of mind
For your protection and the protection of your heirs, owner’s title insurance is a wise investment. Without it, you never know when your home’s history will come back to haunt you, or your property’s past will cause problems. But with owner’s title insurance, you can have the peace of mind that comes with knowing your investment is protected and you will be able to enjoy it in the way you envision. And with that knowledge, you can sleep soundly tonight and for as long as you own your property.