Title insurance is one of the most crucial steps to ensure homeowners close in securely on the house of their dreams. It is mandatory for a home purchase. It safeguards the lenders and the homeowners from the likelihood that the seller or the one before them didn’t have clear property ownership. Even though the chances are low, a title claim can arise. It is better to go in with title insurance than have to forge your property with your own hands.
Learn more about the significance of title insurance when purchasing a home.
How Does One Get Title Insurance?
Once you sign the purchase agreement, you can request your closing agent to provide you with title insurance. It is usual for your agent to choose your title insurance company for you.
What Does a Title Insurance Cover?
Your title insurance policy covers all underlying problems that come along with the property’s title and have been overseen when buying the house.
Here are some of the issues that a title insurance policy will help you against:
Fake documents
Boundary disputes
Inadequately recorded documents
Errors on the property deed
Encroachments
Contradictory wills
Property survey errors
Liens from contractors, taxing entities, or prior lenders
Boundary wall arguments
Statements by an ex-spouse who hasn’t yet signed off on the sale
What Isn’t Covered Under a Title Insurance?
Title insurance is not a one-stop solution to all your property issues. It doesn’t protect you against all potential infringements. If you’re facing any title issues due to your shortcomings, the company has nothing to do with it.
Any issues created after you’ve bought the property are yours to deal with. A title issue cannot solve at all. It will protect you only against those issues that could have led you not to purchase the property.
What Happens If You Don’t Get Title Insurance?
The sellers can sell you a home that isn’t even theirs. There have been many situations where renters have acted as homeowners and illegally sold properties. However, there can be many types of title issues that can arise, such as a lien against the property.
In any of these situations, title insurance will come to your help. It will handle the case moving forward and ensure you don’t have to spend anything.
The Policies That Fall Under a Title Insurance
Title insurance comprises two policies: the borrower and the lender. You will be asked to buy a lender’s policy when taking out a mortgage loan. It will help pay for all the legalities and reimburse any mortgage payments you can’t make if you lose the house against someone’s claim. Families living in the home for decades could need a professional when things take a turn. Choosing a real estate expert in the fast-paced Southwest Florida market is challenging.
Jack Lewis GRI has decades of experience in the real estate market and works persistently for parties to ensure a comfortable and smooth home purchasing and title insurance process. Contact Jack Lewis GRI today at (239) 839-5927 or book an appointment.
