Finally, after years of earning and saving money, you are the proud homeowner. Negotiating with the seller was very easy. Everything is perfect, you tell yourself during the housewarming party you organize. Then a court order arrives asking him to vacate the property, to turn the dream into a nightmare. Turns out your new house is tied to an old legal case.

Many homeowners end up in unforeseen legal battles because they were unaware of title insurance or chose to ignore it.

What is title insurance?

It is insurance coverage for the property owner for losses incurred from title defects, including outstanding property taxes from previous owners, falsified or invalid title documents, lack of access to the property, heirs who have a valid claim about the property but they have not come. forward, and other factors that come to light after the property is purchased.

With properties rapidly changing hands, buyers tend to overlook crucial details. This can lead to problems later, such as court settlements, legal fees, and, in some cases, loss of property. Hiring this type of insurance will help you avoid these types of problems.

The process of obtaining title insurance

When title insurance is purchased on a property, a title search is conducted prior to purchase. An experienced property attorney or representative from the title insurance company usually handles the search. They conduct thorough checks on documents filed with the local land records office, to make sure the property does not have existing title defects such as bonds, property taxes, outstanding mortgages, defects from previous property transactions and other issues that threaten the property of the insured.

If the property passes this control, insurance is granted and the property can then be purchased. The responsibility for having conducted a thorough search of the property now rests with the insurance company. Once the insurance is granted, the firm will take care of any losses incurred in defense of the title. The insurer will not only cover your legal fees, but will also reimburse you for the amount invested in the property should it be seized.

Choosing the right insurance company

Insurance rates vary from company to company. Shop around and compare the different policies on offer to get the best deals on your property.

When selecting a company, be sure to start by talking to a few of your customers. Do your homework. Gather information on the policies offered. Some firms offer discounts in certain cases. Find out if you are eligible for them. Information on how the firm resolves your title disputes and its success rate will help you make your decision.

Another thing to do when buying this type of insurance is to make sure you understand what the policy offers. If you are not familiar with the legal aspect of the process, it is recommended that a trusted attorney review the document before signing it.

With property scams increasing by the day, title insurance for your property will give you peace of mind. Plus, if ownership is ever questioned, having your property title secured won’t leave you fighting in court.