If you are well into the home buying process, you’re probably aware that the price of the home is not the only expense involved with making a home purchase. Closing costs, a home inspection and maybe even Homeowners Association fees may be in your future and should be taken into consideration.
One item that you may not be aware of but is extremely important is title insurance. This is an important part of purchasing a home because it protects you from issues that may come up regarding ownership.
If all goes well, the title search won’t uncover any red flags or disputes on the property. However, there are a number of potential problems that could arise. If there are any unsettled issues on the home, title insurance may help you resolve them, RealtyTimes noted.
Title insurance can help keep the buyer from legal trouble in the case that there are old loans on the house or existing easements that were not disclosed.
For instance, if the home you bought had been mentioned in a will, but the heirs decided to sell the property, other relatives may come forward feeling entitled to the home. Sometimes, a heated dispute among heirs can lead to desperate acts. There have been instances when an heir has forged a signature on a claim deed after not being able to agree on what to do with the home with his or her siblings or cousins.
“Unresolved liens can cause problems for a new homeowner.”
Unresolved liens can also cause problems for a new homeowner. Unpaid property taxes from the previous owners can affect you. Contractors who have worked on the home but were never paid for their efforts can also create a headache for a new owner.
Even a misspelling in a court document can bring more stress than is necessary.
Title insurance can help protect you against all of this.
Chicago Title Insurance Company explained title insurance doesn’t just help out when there are hidden problems tied to the title. It can also make passing the title onto someone else even easier. Or, if someone has a child after his or her will was last updated, title insurance will help the child claim his or her share of the property.
If a devastating house fire should occur leaving only the remains of your home and the land on which it stood, title insurance can make sure you are able to keep that land if you so choose. Without title insurance, you may wind up losing the land as well.
Seeking out title insurance
Title insurance is paid with one single premium when you close the sale. Depending on where you live, you may be able to shop around for the best rates. However, some states require all title insurance fees to be uniform, according to Realtor.com.
To find the best insurer, ask your friends and family, your real estate agent and lender for suggestions. Be sure to look into the company’s licensing and reputation to ensure you are working with someone with your best interest in mind.
Buying a home is an exciting time, but you wouldn’t want that excitement to be overshadowed by a legal problem that comes up out of the blue. Title insurance can make sure that when you purchase your new home, it truly is yours.
For more information about the home buying process, talk to the experts at Lenox/WesLend Financial or call 844-225-3669. As heard on the radio, it’s the biggest no-brainer in the history of mankind.