Titles are the evidence that you lawfully own any piece of real estate or property, title insurance keeps them secure. You see, over half of all real estate transactions come into problems with the chain of title transference, and this is where title insurance comes in. Title insurance helps to pinpoint and resolve such issues before they cause you real problems; it’s not just financial security on offer, it’s peace of mind.
For most people their home is the biggest investment they will ever make, and title insurance goes a little way to protecting that investment properly; by protecting lenders and real estate owners from any property damage or loss due to liens, encumbrances, or defects in the property it makes sure that everyone’s a little bit happier. Unlike other insurance policies which cover property or structures from possible future events or hazards, this insurance covers you against any pre-existing issues, hazards, and defects in the home (like improperly executed documentation or previous debt from the last owner) for a one-time premium. Title insurance products protect from things like others claiming ownership interest, fraud, forgery, encroachments, easements, and other such items when specified by the policy.
Buyer, seller, and lender alike all benefit from the safety net that title insurance offers, so while it’s not a necessity it is a very smart choice. Obtaining title insurance is highly recommended when you’re investing in real estate.
So how does it work, you ask? Well a title agent, notary, or attorney begins a title search when any offer is made on a property, and a preliminary report is issued to the customer for approval. When the reports have been confirmed funds are disbursed, demands are paid, and the actual policy has been created you can be sure that your property is a little bit safer!