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Why Title Insurance Is a Must-Have

In the excitement of closing day, with so much paperwork to sign already, purchasing title insurance may become an afterthought. But if you are unprotected against issues such as previous liens on the home, missing heirs and other problems, you may jeopardize your right to ownership. Losing the home due to these unforeseen circumstances can be avoided with a simple Owner’s Insurance policy.

Leaving No Stone Unturned

A myriad of title-related problems can crop up following the acceptance of your sales contract. To discover potential sticking points, have a professional title search conducted. While a majority of these title searches reveal a clean record, many turn up unresolved issues, sullying the title to the property you mean to buy. Following through with a title search can resolve these problems before they cripple the deal.

A detailed history of the title you are seeking to acquire can reveal a variety of undesirable events. Encroachments upon the plot by overzealous neighbors, a lien placed upon the property by an unpaid contractor or a tax lien filed by the IRS are just a few examples of potential disasters that could turn up in a search. For more information, visit Marina Title’s Residential page.

Unrevealed Issues

There are some problems that will not or cannot be revealed in a title search. An Owner’s Policy of Title Insurance is designed to protect you against these problems. Sometimes referred to as simply the “Owner’s Policy,” this type of insurance requires a one-time premium at the time of closing and will remain valid as long as either you or your legal heirs maintain a vested interest in the property.

Your policy should cover the face value of the property. If anything should go wrong due to forged legal documents, erroneous or incomplete deeds and other issues, the title insurance will protect you from financial ruin. The title company you hired will defend you against any losses or damages resultant from circumstances beyond your control. With an Owner’s Insurance policy, you are protected as long as you or your heirs maintain possession of the property.

Refinancers Need Title Insurance, Too

Lenders will typically require a new title search and renewed loan policy, even if the borrower is merely refinancing a home whose mortgage is already held by the lender in question. To be clear, your Owner’s Policy will remain valid, but the entity to whom you make your mortgage payments will want to protect its investment by renewing its lender’s policy. The lender will also want to make absolutely certain, once more, that the title is clear of issues or defects.

For more information about the necessity or process of purchasing title insurance, call us today at (305) 901-5628 or send us an email at [email protected].