4 Reasons to Have Title Insurance
If you’re in the midst of buying a house or interested in becoming a homeowner, you may be looking at the number of different insurances you can buy to protect your home. But what about protecting the actual purchase of the home? Buying title insurance will do just that.
Title insurance protects the buyer, as well as mortgage lenders, against any issues or problems in the transfer of ownership of property. For example, if the seller was for some reason to not have full ownership of the house they were selling, and could not legally give you ownership of the property, title insurance would cover any losses or damages you may incur during the process.
Though the chances of filing a claim for coverage under title insurance is low, the amount you could lose without coverage is extremely high. Here are the top 4 reasons you should have title insurance and the things title insurance will protect you from:
- Unreported Liens and Easements. People or agencies may have filed liens against a home or property to settle a debt from the previous homeowner. The most common property liens are usually related to taxes, child support, or contractor’s fees. These liens will be stuck to the house and could be passed on to the next homeowner, regardless of whether or not they accrued the debt or not.
- False or Forged Transfers of Property Ownership. In worst-case scenarios, title insurance will protect you from people selling you a home they do not own or have zero property rights to. Other cases may have a co-owner to the property that did not authorize the selling of the house. Either way, any issue in title transfer when buying a house will be protected under title insurance.
- Errors in Recording or Filing of Documents. A changeover in ownership from a will or badly documented paperwork could cause issues down the line after you have already purchased the house and seemingly gained ownership of the house. Title insurance will give you rights, and protect you legally and financially.
- Loss of Money or Home. No matter what the situation, title insurance will cover any legal costs that may arise in the process of fighting for your property rights. Plus, if you have to file a claim, the amount of money that will be covered versus the amount you would pay with no insurance would be significantly different and could protect you from potentially losing the home in general.
Guarantee Abstract Co. has been serving buyers and sellers of real estate in Garfield County since 1931. Our team is licensed and experienced to help you every step of the way, whether you’re buying or selling. We work with buyers, sellers, lenders, and real estate agents, and are authorized to help you with all your title and closing needs. Fill out a contact form to request more information, or give us a call at 580-237-5537.