What is Title Insurance?

Whether you are buying or refinancing a home, there’s an optional insurance policy you should buy: title insurance. Title insurance is a policy on the deed of your home. Some people just don’t want the extra expense. However, going without it could end up being awful for your finances. Title insurance can protect owners of events and matters that can be brought up from the past. Can you imagine if one day someone comes along and contests your ownership of the property? What happens if an old title issue surfaces and a claim is made on a policy? Imagine buying your new home only to find out that back taxes are owed on the property and remain unpaid. If you didn’t have this protection, you would be responsible for payments on those back taxes. If the payments aren’t made, you could lose the home to the party that the taxes are owed. Title insurance was created to protect homeowners from unknown claims against their property that can show up years down the road.

Title Insurance can protect the homeowner from:

• Mistakes on titles, especially lately, that are transferred through a sale of foreclosure without certain rulings met, thus making the transfer of the title invalid.
• Mistakes within all the paperwork brought to a closing, somewhere along the line there may be a forged signature or recorded documents signed by people without legal authority.
• Mistakes made during the probate process for the previous owner that overlooked someone else’s rightful claim (undisclosed heirs) to the property or someone else’s interest in the property. Misinterpretation of wills and deeds.
• Mistakes made in the description of the property.
• Mistakes missed where claims, tax information or easements have not been recorded properly in the public record.
• Mistakes missed of liens on the property or judgments against the previous owner.
• Mistakes in unpaid taxes or mortgages and unpaid debts.

Be sure to use a licensed and reputable title company, such as Title First Agency, to review the title and ensure the property you want to buy has no disputes or defects attached to it that could hurt you financially. Buying a home is probably the largest single investment most of us make, we need to protect it.