Buyers often ask why they need title insurance. Most home for sale have a history. The title company does a thorough search of the title to see if there are any defects. By taking out title insurance most policies provides title protection from problems that may appear after the buyer closes the transaction. Some problems may be criminal but most are just errors that need been resolved.The criminal ones include false impersonation of the owner and forgeries or fabricated documents that have been filed in the public records. These can jeopardize the buyers legal claim to the property.
The property may have an easement or survey disputes. The title company checks to see if surveys have been filed on the property and if there are any disputes. Some deeds have easements that may be problematic to the buyer. They may stop the buyer from using their property as they like.
The tile company checks for liens and encumbrances on the property. All liens must be discharged before or at the time of the purchase of the property. Some properties have restrictions or covenants limiting the use of the property. By knowing the limitations of the property before you by is a must. There might also be another owner of the property that you are not aware of. The title company will find this when they do the title search.
If you are purchasing a home from an estate many things need to be checked. There maybe missing heirs that are named in a will or other people that feel they should have been in the will. There maybe a missing will that shows up at a later date. By having a title company cross all the t’s and dot all the i’s you are covering yourself for the future.
One of the most common problems with a deed is clerical or filing errors. The title company know what to look for. Having title insurance is a no brainier. Protect your investment.