Why Do Home Buyers Need Title Insurance?
A Homeowner’s Policy of Title Insurance is essential in protecting property owners from legitimate or false title claims by previous owners or lien holders. More than one-third of residential real estate transactions encounter title issues that need resolution before closing to ensure they don’t burden the new owner. Common problems include existing liens, unpaid mortgages, and recording errors involving names, addresses, or legal descriptions.
A Homeowner’s Title Insurance Policy offers protection to the owner and their heirs for as long as they hold an uninterrupted interest in the property. We perform comprehensive searches of existing records to identify and resolve potential defects, minimizing the risk of future claims.
Title Insurance is one of the best investments a property owner can make to protect their family, with the premium paid only once, at closing, providing lifelong coverage. This National Homeownership Month, educate your clients on the crucial role of Title Insurance in securing their dream home and ensuring their investment remains protected!
FAQs About Title Insurance for Home Buyers
What is Title Insurance? Title Insurance protects home buyers and lenders from financial losses due to title defects, liens, or other legal issues that might arise after purchasing a property.
Why is Title Insurance Important? Title Insurance ensures that the home buyer has a clear title to the property, free from any legal claims or issues. This protection lasts as long as the owner or their heirs have an interest in the property.
What Does Title Insurance Cover? It covers legal expenses and financial losses related to title defects such as:
Existing liens or unpaid mortgages
Errors in public records
Fraud or forgery of previous title documents
Disputes over property boundaries
How Long Does Title Insurance Last? A Homeowner’s Title Insurance Policy lasts as long as the homeowner or their heirs hold an uninterrupted interest in the property.
How Much Does Title Insurance Cost? The premium for Title Insurance is paid once, at closing, and it varies based on the property's value and location. It is a one-time cost that provides lifelong protection.
How Are Title Issues Resolved? Before issuing a policy, a thorough search of public records is conducted to identify and resolve any title defects. This proactive approach minimizes the risk of future claims.
By understanding and conveying the importance of Title Insurance, you can help your clients make informed decisions, ensuring their investment is protected and their homeownership journey is smooth and secure.
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