Understanding Title Insurance: A Must-Know
Buying a title can be quite complex, especially if you’re not familiar with the ins and outs of real estate transactions. One important aspect of buying a property is title insurance. This insurance safeguards homebuyers and mortgage lenders from financial casualties due to defects in a property title.
So before consulting a title insurance attorney, here’s what you need to know about title insurance:
What Is Title Insurance and How It Works
Title insurance is a type of insurance that protects both the buyer and the lender from any defects or issues with the title of a property. The title of a property is legal ownership, and any problems with the title can lead to significant financial losses and legal issues.
This insurance is bought during real estate closing and ensures that public records are searched for issues with the title. The insurer resolves any found issues before issuing the policy.
Once the policy is issued, it protects the buyer and lender from future claims or issues with the title and provides legal representation and financial compensation to resolve any issues that arise after closing.
What Does Title Insurance Cover?
- Fraudulent Claims. There are instances when someone may fraudulently claim property ownership, or there may be forged documents related to the title. Title insurance will provide coverage for any losses resulting from such fraudulent claims.
- Liens. A property may have a lien placed on it if the previous owner had unpaid debts or taxes. Title insurance can help safeguard against any financial losses from such liens.
- Boundary Disputes. Some titles may have disputes related to property boundaries, which can lead to legal battles. Title insurance can protect property owners from such disputes and cover legal expenses.
- Errors in Public Records. Public records or documents related to the title can contain mistakes, which can cause confusion and legal issues. Title insurance can protect against any losses due to these errors.
- Unknown Heirs. If an unknown heir comes forward claiming ownership of the property, title insurance can help protect against financial loss.
The Advantages of Having a Title Insurance
Property buying is a significant financial investment, and title insurance helps protect that investment. Knowing that you are protected from any issues with the title can provide peace of mind to both the buyer and lender.
Aside from that, if any issues with the title arise, a title insurance attorney will provide legal representation to resolve the issue. This can save both time and money by resolving these issues quickly and efficiently.
Warranty of Title
A warranty of title is an alternative to title insurance that insures the seller has clear ownership of the property and there are no issues with the title. While a warranty of title can provide some protection to the buyer, it is less comprehensive than title insurance. After all, it only covers issues the seller is aware of, while title insurance covers a range of potential issues.
Final Thoughts
Title insurance is necessary for anyone buying or owning a property. However, working with a reputable title insurance attorney who can guide you through the process and help you understand the different types of policies available is important. With the help of an attorney, you can ensure that you are fully protected and prepared for any potential issues related to your property’s title.
Are you in need of a trustworthy title insurance attorney in Rock Hill? Steltzner Law Firm, LLC can guide you through the process and ensure that your interests are protected. With years of experience in the industry, our team of legal experts can help you navigate the complex world of title insurance. Schedule a personalized and comprehensive legal review with us today!