If you are purchasing a home for the first time, you may be surprised to learn that you should have title insurance on your new home, even if you've had a title search done on the property.
Title insurance is an important piece of the homeownership process. Unlike other insurance policies, it is a one-time fee paid at the time of closing. It protects you in any defects in the title of your new property. Lenders purchase their own title insurance on your property, and they often require you do so as well. Even if you aren't required by the bank, you should still purchase it.
A title search will reveal any defects in your title, and these defects should be rectified before you close on your house. Your attorney will work with a title search company and then will review and rectify any defects that occur on the title. These defects may include old liens against the title or unpaid taxes.
But title searches only show what is recorded in the public record. Sometimes there will be claims on your title that are not part of the public record or that are claimed after false information was recorded about your property in the public record.
Three of the most common problems people have on titles after the sale of a property are:
• Claims based on fraud and forgery
• Missing heirs appearing and claiming the title
• Conflicting wills
Title insurance protects you against such problems. It means that the insurance company will protect your investment if such problems occur. They may battle the claims in court or return your investment to you if the claim is found to be justified.
If you are purchasing a home, you will need an attorney who specializes in real estate law. An attorney specializing in real estate law will be familiar with the necessary steps in properly closing your home, including the purchase of title insurance. Often times, the attorney will have a title insurance company that they are comfortable working with and they can purchase the policy for you, reducing the amount you have to worry about.
Refinancing your home will also likely require you to purchase another title insurance policy.
While this may seem silly since you purchased a policy when you first bought the house, the new policy will protect you against any problems or liens against the title that occurred between the time you bought the house and the time you refinanced. Many lenders will require you to repurchase this insurance for their own protection. If it has just been a couple of years since you bought your house, you can ask the title insurance company for a re-issuance discount. Some companies will honor this discount if a small window of time has occurred since your purchase of the house. บ้านมือสอง
Title insurance may seem like a silly waste, especially if you are in the process of refinancing, but these policies are standard procedure when buying a house and you should consider them an integral part of the process. Your real estate attorney can help make the title insurance process as easy and painless as possible.
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