So, you might be thinking to yourself: is title insurance really important when it comes to your real estate transaction? As a title company, we may be a little biased, but the answer is, yes! Especially if you're a buyer who wants to ensure that your investment is protected for years to come. So whether you are purchasing a multi-million dollar commercial property or a single family home, here are five reasons why title insurance is essential to your real estate transaction.
Protection Against Ownership Disputes
Title insurance provides protection against any defects or disputes in the property's ownership history. It ensures that the property's title is clear and free from any liens, claims, or other encumbrances that may arise after the purchase. If any such issues are discovered later, the title insurance policy covers the costs of legal defense and potential financial losses.
Safeguarding Your Investment
Title insurance helps safeguard your large investment by minimizing the risk of financial loss due to unforeseen ownership issues. If someone challenges your ownership rights or makes a claim on the property, the title insurance policy will cover the legal expenses and compensate you for any financial losses, up to the policy's coverage amount.
Peace Of Mind
By obtaining title insurance, you gain peace of mind knowing that a thorough investigation of the property's title history has been conducted and if any problems arise in the future, the title insurance policy provides you with a safety net. That is why it is important you choose a title company that comes highly recommended and is highly versed in various types of transactions. The title company you choose will perform the comprehensive search and examination of public records to identify any potential issues that may affect the property's title.
Lender Requirements
If you're obtaining a mortgage to purchase a property, a majority of lenders will require you to obtain lender's title insurance. This policy also protects the lender's financial interests in case of any title-related issues should arise. While lender's title insurance doesn't directly protect the buyer, it is typically bundled with your title insurance.
Cost Effective
Title insurance involves a one-time premium payment, typically paid during the property purchase. The premium is based on the property's purchase price and provides coverage for as long as you own the property. Considering the potential financial losses and legal expenses that could arise from a title dispute, title insurance offers a cost-effective means of protecting such an important and large investment.
In summary, title insurance and the title company you choose is essential. Title insurance protects your ownership rights, safeguards your investment, provides peace of mind, meets lender requirements, and offers cost effective protection against unforeseen title issues. By utilizing a realtor founded, reliable title company like Willow Bend Title with years of real estate industry knowledge and a staff who truly cares, you can rest assured that a comprehensive search and examination is performed and your investment is protected for years to come.