When you buy a new home it is of the utmost importance that you receive a clear title to the property that you have purchased. Unfortunately, there is always the possibility that there could be claims from the family or heirs of a previous owner, or maybe a lien on it by a contractor or creditor. For that matter, the IRS might have some claim due to unpaid taxes. That means that you could purchase the property and then suddenly discover that someone else has an ownership or security interest in it -- and that may make it impossible for you to sell or develop the property you bought.

That is the reason for title insurance. Title companies have already given you the assurance that there are no blemishes or blots on your title to the property – at least none that they can discover in the public records. The title insurance will then cover any undiscovered claims growing out of the unrecorded or overlooked circumstances that could threaten your investment.

After the purchase of title insurance, title insurance company protect you by defending your title in the face of subsequent claims, taking the matter to court if necessary. They also cover the cost of settling the claim if it proves to be a valid one. They are there to protect your title and help you maintain your possession of your property.

Posted by: Greg at 12:14 AM | No Comments | Add Comment
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