Here’s how title insurance specifically protects property buyers:
Protects from Hidden Defects: Even the most thorough pre-purchase research can miss issues with a property’s title. Title insurance protects you from previously unknown issues like:
Liens: From unpaid taxes, contractor work, or judgments against previous owners.
Errors in public records: Clerical mistakes affecting your rights.
Undisclosed easements: Someone else’s right to use part of your land.
Conflicting wills or unknown heirs: Clouding ownership claims.
Forgery or fraud: In past property transfers
Covers Legal Expenses: If a title defect surfaces after you own the property, title insurance pays for:
Lawyers’ fees: To defend your ownership rights in court.
Court costs: Associated with title lawsuits.
Financial Reimbursement: Your title insurance covers you financially, up to the limits of your policy, if a covered title issue:
Costs you money: To clear an unpaid lien or resolve an easement dispute.
Results in loss of the property: If a prior owner had a superior legal claim, for example.
One-Time Cost, Lasting Protection:
Premium: You pay a one-time premium, usually at closing, as part of the transaction costs.
Length of coverage: Protection lasts as long as you or your heirs own the property.
Peace of Mind:
Big Investment: Buying property is a major investment. Title insurance gives you the peace of mind that it’s protected.
Focus on Your New Home: You can enjoy your new home without constantly worrying about unknown title problems.
Important to Note: Even with title insurance, it’s still wise to have a real estate attorney help review the title search and assist with your purchase to minimize the chance of issues arising.