Buying a home is a massive financial investment today. However, closing the deal can be overwhelming. From choosing the ideal location to securing a mortgage, you have a lot to process. One crucial aspect, however, that most buyers overlook is—how to secure their property title. Here’s where the need to opt for home title insurance services comes into play. It helps to safeguard against the hidden risks in property titles.
As you read on, you’ll discover the most common, hidden risks in property titles. In addition, you’ll discover how Latitude Title Group’s title insurance services can help protect your investment.
Understanding title insurance
Title insurance refers to a form of indemnity insurance. It protects mortgage lenders & homeowners from financial losses. Insurance also prevents legal expenses that may occur due to defects in a title.
Understand that title insurance doesn’t protect against future events. Instead, it only covers issues that occurred before you took ownership of a property. Some of these issues include:
● Serious legal threats
● Unpaid taxes
● Fraud
● Undisclosed heirs
Without the right title insurance, any of the aforementioned issues can lead to costly legal disputes. In the worst-case scenario, you may even end up losing your home. To avoid these issues, it makes sense to ask for title insurance services.
Top title defects you should avoid
To avoid putting your property investment at risk, below are a few title defects you should avoid:
Ownership disputes
Does the property have unknown heirs? This occurs when the previous property owners are no longer alive and there’s no will or documentation in place. To avoid issues, in which a long-lost heir comes claiming ownership years later, it makes sense to have title insurance.
Forgery & fraud
Sometimes, title documents can be forged. Signatures may also be added under duress. Getting this type of title without any insurance can result in big legal issues.
Understanding that it’s not always possible to detect document forgery or fraud quickly. To avoid the aforementioned issues, then it makes sense to opt for the right title insurance services.
Unpaid taxes
Understand that unpaid taxes can lead to different property title issues. When taxes are unpaid, liens may be placed against the property. Sadly, you’ll end up being responsible for the lien if you don’t put measures in place. This explains why you need to get title insurance from a reliable provider, such as Latitude Title Group. Title insurance helps to discover problems. Furthermore, it protects you against financial losses due to the lien.
Encroachments
Imagine that you discover after a property purchase that your neighbor’s structure encroaches on your land. This can always lead to disputes over ownership rights.
To avoid legal battles, having the right title insurance is a must. It protects you (the new property owner) against potential financial issues and legal problems.
Understanding how title insurance works
As you now know, insurance can protect you against financial losses & legal problems due to defects in your title. But how exactly do title insurance services work?
● After purchasing a property, your real estate & title service provider, such as Latitude Title Group, performs a thorough search. This helps to uncover any defects.
● If issues are found, the service provider ensures the problems are resolved quickly before closing the deal.
● After that, you can proceed to buy the title insurance.
You have two options when it comes to insurance purchases. You can decide to opt for the owner’s policy. Alternatively, you can choose the lender’s policy.
● An owner’s policy is ideal for homeowners looking to protect their property interest.
● A lender’s policy is required by lenders. It protects the lender’s property investment and financial interests.
Unlike other types of insurance, title insurance only requires a one-time payment. You need to pay a suitable fee after closing the deal. Having the right insurance will give you peace of mind forever.
Visit the official Latitude Title Group website to better understand how title insurance services can protect your property investment today!
