Property is typically a significant investment, and new owners of the property want to protect the money they invested in their property. One of the fundamental things that the owners want to protect is their property rights. Accordingly, it is important to make a search for the title on the property and the purchase of an insurance of said title in case something is lost during said search.
It is important to get title insurance every time you buy real estate, whether you are purchasing a home, business or investment property. Title insurance protects the buyer from a piece of real estate loss due to problems with the title, or public deed, on the property. These problems may arise due to past transactions that were not completed correctly. For example, a couple owns a home, but she never signs it during the sale. In a case like this, the wife may come back later and claim that she owns half the house. Title insurance protects you in situations like this.
Search of the title
The title search, if done correctly, will provide you with a string of title to the property, show any restrictions on it, such as easements, and identify any relevant withholding rights on the property. The search for a title takes place in the local public property records of the city, town or county where such property records are kept.
Anyone can go to the office where records of the property are maintained and search. However, many people choose to use title insurance companies or lawyers to do so on their behalf. It is important that the title search be complete and disclose all liens, retention rights, and property owners so that the person purchasing the title knows: you are buying a property that can be sold legally; if there are any easements or restrictions to which you will be subject or responsible when you become the owner of the property.
For these reasons, prospective property buyers should conduct a full title search. Limited title searches can be made if the property owner is not making changes, such as a refinance of the property.
It also protects the buyer from encumbrances against the home that they are not aware of. For instance, the IRS can put a charge in someone’s home if they are behind their taxes. The city may place liens if the water bill or other service bills are unpaid. Even contractors who have done work in a home can place liens against them. When you get title insurance, the title insurance company will check to see if there are any liens against the home and will reveal your findings before you buy. If it later reveals that there was a lien that the title company did not find, then the title company will be responsible for paying the cost to solve the problem.
If you get a mortgage to buy the property, your lender will insist that you get title insurance. Title insurance protects the lender as well as the buyer. You will not be able to get a mortgage to buy a piece of real estate without having to purchase a property title insurance policy.
Insurance of purchase title is vital because there is no way you can know what has happened in the past of the property without extensive research. Even so, unexpected things can happen. What happens if you buy the house of a man you inherited from your grandfather, and then someone claims that the house should have gone to them and decide to contest the will? Situations like this can be very messy, but if you have title insurance, then the insurance company will have to pay you back from the house and often your legal expenses if you end up losing it due to problems with the title.
Already making a significant investment every time you buy real estate, you need to make sure that your investment is well protected. There are various things that can affect the authenticity of the title of your property, and getting title insurance is the only way to ensure that you will not lose your investment if there is to prove to be a problem with the title.
Talk with a qualified lawyer in real estate law
This article is intended to be useful and informative. But legal issues can become complicated and stressful. A national title services can serve your legal needs, and represent you in court. Take the initial step now and contact a qualified title insurance attorneys near you to discuss your particular legal status.
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