In buying a house, there are a lot of costs that you need to consider to be able to have a smooth transaction. One of the critical items you need to purchase is title insurance which plays a significant role overall. Title insurance is something that would help you close the deal without worrying about any unfortunate events. Some people would disregard it, but the risks are too high even to ignore its importance.
The real estate industry is vulnerable to a lot of nasty incidents such as fraud, shady sellers, and sloppy foreclosure. Risking yourself and your savings to these unfortunate situations will mark a scar and even traumatize you from engaging in any real estate transaction. Here are the top reasons you need title insurance.
Lenders require title insurance.
Before you acquire any loan or mortgage for the property, your lender will require you to get a lender"s policy to protect their interests. Any legal claims on the property would immediately affect the lender. So, to be sure that they won"t get tangled in a complicated situation, they need title insurance to protect their finances. A lender"s policy would remain effective until you have paid the mortgage or loan in full. So, before you get to apply for a mortgage, shop for a title company that could assist you with this matter.
A title search can uncover liens.
An excellent title company can search to check for any underlying problems about the title. Before you seal the deal, you need to make sure that you are paying for a clean property. You don"t want to be paying for unpaid taxes that the previous owner left behind. As the new owner, you will be required to fulfill the payment of the liens, and you could end up wasting your savings on something you"re not supposed to pay for.
Save you from disputes and legal claims.
A title search can also help you uncover any nasty legal claims that would give more headaches and stress to your situation. There might be some forged documents that were used to make the sell, or there might be some inconsistencies in the information of the said owner. Maybe the deed also needs to be updated, there are mistakes on the dimensions of the property, and the list goes on. Records would never be free from human error, and you want to make sure that everything is alright with making it your own.
Also, there are instances that there is an unknown heir that will claim the house and you would be having a hard time going to court almost every day just to prove your ownership.
Sell without problems in the future.
If you"re investing in real estate to sell for later, having title insurance can speed up the whole process because the buyer would feel more secure. The buyer would know that you"re a legitimate seller and they"re not going to be worried about any issues about the property. Expect a fast transaction, and you can then move on to another property to invest on.
Get the peace of mind and security.
You can rest easy on your transaction if you know that there no legal claims that come with the property. You"ll be able to focus on the other parts of the deal such as adding more design elements on your home. Or you could spend more time in preparing for your move and packing your belongings. Moving can be tedious, too and you can focus more on that as you would have your reliable title company to work on your purchase.