If you are planning to buy a property, chances are that you’ve heard of title insurance. It’s an important safeguard to protect your ownership of the property. But before you buy one, you should have a thorough understanding of title insurance:
What is title insurance?
A title is the proof of ownership. It shows the current legal owner of a property. For instance, you will be the title holder if the property is in your name. However, in case of a mortgaged property, it is the lender who hold the hold rights over the property.
Any challenge to the title means a threat to your ownership. Title insurance is meant to protect the title from any defects or chal-lenges, whether these are in the past, current, or future. However, it is important to understand that the insurance covers for any loss that you may suffer because of defects in the original property deeds. It does not guarantee your title, it simply covers your financial losses.
Why you should get a title insurance?
Protecting your investment: Buying a property means a substantial investment on your part. Title insurance protects this investment by insuring that it is not lost if the property title comes under question.
Safeguarding against past liens: What do you do if there are past liens against the property that you knew nothing? By covering such expenses, title insurance will legally protect you from such mishaps.
As an essential requirement: It could be an essential requirement for buying the property. Many mortgage lenders require title insurance as a pre-condition for issuing loans for buying a property.
Legal protection: Although it is highly recommended that one goes thoroughly through the contract before buying a property, there could still be legal loopholes that get overlooked. A title insurance will protect you against any losses if these loopholes are later used to challenge the title.
Add a Comment