For many, purchasing a home is a dream come true. You’ve done all the hard work of securing your loan and searching for the perfect home for you and your family.  All that hard work and effort deserves to be protected, and you’re probably thinking that you have that covered with your home insurance policy, but today we’re talking title insurance.

If you are a first-time home buyer, this may be an unfamiliar term for you. The good thing is that part of our dedication to being your real estate closing attorneys is that we help and explain every part of the process you need clarification on. 

What is Title Insurance?

You may have come across the term in reference to a lender’s policy, which the majority of lenders require. A lender’s title insurance protects the lender if the seller is not legally allowed to transfer ownership rights.  In order to protect your rights as the homeowner, we recommend that you purchase Owner’s Title Insurance. 

An Owner’s Title Insurance will protect you, the homeowner, from unreleased liens on your property, boundary disputes, and forged documents, which affect the ownership rights of the buyer. 

A thorough title search will help alleviate some of the stress of these hidden liens, but even a thorough search can leave issues hidden. Title insurance protects you against this.

Why is  Owner’s Title Insurance Important? 

The number one reason homeowners purchase title insurance is to protect against title defects. The common defects found on home titles include: 

• Unknown Liens: Previous owners might have left unpaid debts that are tied to the property.
• Forgery & Fraud: Previous documents in the title history could have been forged or fraudulently signed.
• Errors in Public Records: Clerical or filing errors can affect the deed or survey of the property.
• Boundary Disputes: Title insurance protects you if it turns out that a neighbor has a legal claim to part of your property or there are undisclosed easements that affect your use of the property.
• Heirs and Probate Issues:  Long-lost heirs may come forward claiming ownership of the property. Title insurance will defend your ownership rights and cover the costs associated with resolving these claims.

Title insurance protects against these and other hidden issues, ensuring you do not incur unexpected costs or legal battles after purchasing your property.

Peace of mind is the second largest reason behind purchasing an owner’s policy. This type of policy provides peace of mind by ensuring that your ownership and your rights are protected. 

Title insurance is a crucial component of the real estate closing process, providing essential protection against unforeseen title defects and legal issues. As your real estate closing lawyers, we strongly advocate for title insurance, as it safeguards your investment, offers peace of mind, and ensures that your rights as a homeowner are protected.

When you understand the importance and benefits of title insurance, it becomes clear why it is a necessary step in securing your dream home. Don’t overlook this vital protection; it is an investment in the security and tranquility of your homeownership journey!