When you buy a new home it is of the quite important that you receive a clear title to the property. There could be claims from the family or heirs of a previous owner, or there could be a lien on it by a contractor or creditor. Heck, the IRS might even have some claim based upon unpaid taxes. You could purchase the property and suddenly discover that someone else has some ownership or security interest in it that may make it impossible for you to sell or develop the property you bought.

That is where title insurance comes into the picture. The title company has already given you the assurance that there are no blots on title to the property you are purchasing – at least none that can be discovered from the public records. The title insurance will then cover undiscovered claims growing out of the unrecorded or overlooked claims that could threaten your ownership of the real estate.

After purchasing title insurance, the
title insurance companies protect you by defending your title in the face of the claim, in court if necessary, and they cover the cost of settling if the claim proves valid. What they do is protect your title and maintain your possession of your property.

ItÂ’s a win-win. You only pay premium, when you purchase your home; title companies routinely offer it at closing, so you are covered from day 1.

Posted by: Greg at 11:18 PM | No Comments | Add Comment
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