04/15
Why Title Insurance?
You make an offer on a house and it gets accepted. Then what? Buying a house is a lot more complicated than signing a check and some papers, moving in and living happily ever after. A handful of problems can occur and become the villain of your home-owning story when purchasing and owning a property.
For those that want the fairy tale ending, we’ve got the perfect solution. An owner’s title insurance policy can be the key to protecting yourself and your property rights when it comes to what is ultimately the biggest purchase of a lifetime. Keep reading to find out why we…and Diane Tomb, who is the CEO of the American Land Title Association (ALTA)…know title insurance is essential.
We are proud ALTA members and love talking about title insurance, so we wanted to highlight a few points from Diane’s recent article about title insurance.
Why is Title Insurance Essential?
With title insurance, your property is yours, but any hidden fees or complications are not. Before you are cleared to close, skilled industry professionals like us complete title (owner) searches to identify and solve any existing property problems left behind by previous owners. That can mean undiscovered tax liens, forged signatures, recording errors, undisclosed easements, title claims or other defects that become your responsibility without title insurance. However, sometimes issues are not there for us to discover yet, and that’s when your owner’s title insurance policy can protect you. If issues arise in the future against your property’s past, you are still secure.
One-Time Fee
Paying for your title insurance policy differs from other types of insurance. It only costs a one-time fee. Plus, the cost of the owner’s and lender’s policies are included in the closing transaction. However, it’s important to know that a new lender policy is required if a buyer refinances a mortgage. Why? The original mortgage is actually paid off during refinancing, and a new loan is put in place…thus the reason for a new lender policy.
A Lifetime of Protection
Title insurance is the best way to protect the present and future of your home. It’s valid until the property deed legally changes hands (likely when you sell) and can even follow the property if it’s passed down to an heir. That means…the longer a homebuyer owns a home, the more cost-effective title insurance becomes.
We believe everyone deserves the “happily ever after.” If you have any questions regarding title insurance or the entire closing process, reach out to us today!