The Importance of Title Insurance for Auction Properties
The Importance of Title Insurance for Auction Properties
Buying a property at an auction can be the beginning of a fruitful investment – or the start of costly and drawn out legal troubles. That is because Auction Properties are more likely than other types of real estate to be saddled with the sort of title and financial issues that brought them to auction in the first place. Learn why title insurance is a must-have for any property acquired at auction, and where you can get this invaluable service.
Title Insurance 101
First, it helps to know what title insurance does and why it is worthwhile for auction properties. Just as you must insure your physical property from various unexpected hazards – such as floods, windstorms, and fires – so must you insure your legal ownership right over the property, known as the title. It is your title to the property that decides whether you have the right to own, occupy, modify, or transfer it.
However, title can be at risk of many hazards as well: missing or defective deeds that may undermine your legal right to the property. Unknown easements or encumbrances that interfere with your full use and enjoyment of the property or unknown claims by third parties are just some of the issues that could emerge at to threaten your ownership of your new acquisition.
Even when you purchase a property in a “conventional” transaction – following a thorough examination of the title history – you must still obtain a title insurance policy for so-called “hidden hazards” that are undiscoverable until it is too late. Your policy will cover the cost of defending against any legal claim to the property, and in the worst-case scenario, will compensate you for the loss of the property up to the purchase price amount.
Title Insurance for Auction Properties
The majority of properties sold at auctions have troubled histories and are being sold to satisfy a bank or condo association judgment. Since a title insurance policy cannot be issued to you until after you take title to the property, it is best to order a title commitment (or at a minimum, a title search), prior to bidding on the property. This ensures that you are aware of any title issues that must be cleared (or taken as exceptions) on the title insurance policy that you obtain after the sale.
As a property investor, you cannot afford to lose precious time and resources fighting for your right to keep your hard-earned property. That is why an effective and comprehensive title insurance policy is a necessary expense for any property acquisition. Think of it as an investment that will pay itself back many times over, through peace of mind and considerable savings of time and money.
Turn to the Experts in Auction Properties
Marina Title is a full-service title company that offers title and settlement solutions to clients of all backgrounds, from first-time homebuyers to property investors. Our wide range of expertise and experience include properties acquired at auctions, so we know what it takes to ensure a safe and sound investment. From conducting a meticulous examination of the property’s title, to creating an airtight title insurance policy that will protect you for years to come, we will do whatever it takes to protect your investment.
To learn more, contact (305) 901-5628 or email info@marinatitle.com.
