If you have made an offer on a home – congratulations! You are one step closer to being a homeowner. However, before the process can be completed, and before you sit down at the closing table, you will need to obtain title insurance. Getting title insurance is a standard step that a homebuyer takes prior to signing on the dotted line, and can be critical for protecting you in the event that the title of the home you’re buying has any issues or defects. At Simple Title Closing & Escrow PLLC, our title insurance professionals can help you to understand title insurance and its benefits, and obtain title insurance before closing.
What Is Title Insurance?
First, defining a title: a title refers to the evidence that a particular party has ownership of a particular piece of property. The difference between a title and a deed is that the title is the legal concept, whereas the deed is the formal document showing ownership.
Title insurance, then, is insurance that protects a homebuyer or property owner from economic damages should they purchase a property that has any title defects or encumbrances. This way, if anyone challenges the title after you–the buyer–have completed the purchase, the title insurance will likely cover legal fees, and reimburse you for equity in the house.
Why You Need Title Insurance
Title defects and encumbrances are more common than one would like to think. For example, consider a situation in which you buy a home from a seller, whom you believe to be the true owner of the title of the house at the time of sale. After the sale is complete, though, the seller’s ex-wife emerges, claiming that she had a stake in the house, and therefore is still entitled to ownership. What happens next? A similar situation may emerge with wills/inheritance issues, land disputes, or cases when liens have been placed against a property.
If you do not have title insurance and these issues surface, you may have to pay for your own legal costs (legal intervention will almost surely be necessary to resolve the issues) out of pocket. What’s more, you could even lose the home, or lose the value of mortgage payments you have already made.
How Simple Title Closing & Escrow PLLC Can Help
At Simple Title Closing & Escrow PLLC, we always conduct thorough title searches before closing to reduce the chances of any title issues surfacing after a sale is complete. What’s more, we offer comprehensive title insurance services, guide you through the different title insurance policy types, and create a title insurance policy on your behalf. We work with you closely throughout the entire process, engaging you along the way and ensuring that you understand exactly what title insurance is, your policy, and everything else you need to know.
When buying a home, do not overlook the importance of title insurance. While it may seem costly or excessive, title insurance could provide you with critical protections in the future. To learn more about title insurance and why you should work with Simple Title Closing & Escrow PLLC, contact us by phone or online today. Our attorneys are highly experienced and knowledgeable in title insurance and general real estate law.