What is Title Insurance?

Each and one of us know the benefits of having a homeowners insurance and a car insurance, but the idea of getting title insurance is something of a blur. The only time this type of insurance comes to mind is when you embark on the process of buying your own house.

What"s a title insurance anyway? It"s a policy that can guarantee you won"t face any unwanted and unknown claims to the ownership of the property you"re interested in.

What could be the worst thing that could happen?

A clean title is relevant because having a title gives you the right to be the owner of a particular property. Just imagine you"re finally buying the house of your dreams, closing a great deal and then afterward, you realize the previous owner has a lot of property debts for years. Those dents or liens may remain charged to the property, and as the new owner, you would be entirely responsible. Or another scenario would be the previous owner sold the house and now an estranged spouse is claiming the property. The scenarios can be endless which can mean a lot of trouble for you and the property you just bought. To keep your sanity, this is where the need for national title service comes in.

Prevention is the key.

Now, there are two things: title services and lender"s title insurance. For a one-time fee, your property will remain covered with a title insurance as long as you own it. If you"re considering a loan, the lender will want you to purchase a lender"s title insurance just to be sure. The lender just wants to be careful especially when it comes to the authenticity of the title. But, that just covers the amount of loan when the claim was made. So, be sure to get an owner"s policy to protect your interest.

A title company will do a detailed search to make sure that there won"t be any dark secrets and surprises within the heaps of files at the courthouse. They will look at wills, deeds, trusts, history, and everything about the property in question. The search can be conducted either manually or a computer or even both. It will depend on the records involved. By a title search, a lot of questions will be given necessary answers. Are there any existing legal actions against the property? Are there any liens or mortgages that are still unpaid? If they missed something during the search, your title insurance would cover any losses.

Go insurance shopping.

The only time you would consider getting a title insurance is during the closing. It may vary from state to state on whether the seller, buyer or both will be liable for paying the coverage.

You may purchase the title insurance from the company of your choice. Costs may be similar from company to company, but it"s your right to choose a company you"re comfortable with. You can do a background check for you to choose a reputable and trustworthy team. The only time you can purchase a title insurance is when you buy a home, and it"s not every day you get to choose the right lawyer to work with. But, if your lender insists a company of their choice, you can go with it as they buy it several times.

So, if ever you are deciding to purchase a home, don"t forget about getting a title insurance for you to be safe. Not everyone is truthful during real estate transactions, so it"s important to grant yourself protection from fraud and all kinds of title claims.

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