What is Title Insurance and Do You Need It?

 

It’s time to move into your new home - you’ve rented the moving vans and picked out the color of your new kitchen. The utilities are all up and running and packing is a work in progress, but what about those bills left behind by a previous owner? Or what if “the rightful owners” such as missing heirs were overlooked in the closing process and try to claim your new home for themselves ?

These are real concerns for new home owners who don’t invest in title insurance when purchasing their property.

Title Insurance protects your rights as a property owner. It protects against past problems as well as any ownership disputes that may arise. With title defects occurring in 25% of real estate transitions, it is important to protect yourself.

Unlike other types of insurance, title insurance is a one-time fee that protects you from title defects including the previous owner’s debts such as unpaid mortgages, utility bills or property taxes, claims of ownership or missing heirs and fraud or forgery. Although optional, it is vital to prevent costly legal fees that could occur if you end up in a sticky situation.