What Is Owner’s Title Insurance?
Before you buy a property, you’ll need to verify that the seller has full control over the title deed. This process is called a title search, and there are many professional services that provide them for a fee – however, even with these services, things can still go wrong, and that’s where title insurance kicks in.
What Are Some Situations That Title Insurance Helps Resolve?
As the name implies, title insurance is literally insurance against the failure of the title. This form of insurance will financially protect you against the following circumstances:
- Basic errors. Whether it’s a blank field in the deed or simply a typo, these types of clerical errors can easily run a sale into the ground without title insurance.
- Record-checking mistakes. Even if the documentation is error-free, it’s still possible to miss important information such as a hidden mortgage or any liens.
- Not all sellers are honest, but good title insurance protects you from their scams.
- Hidden heirs. Although rare, sometimes a next-of-kin is illegally excluded from a property deal.
- Other defects. Whether the former owner’s former spouse comes forward and claims that he or she still owns the home or a business has put a lien against the title, having title insurance can help protect your investment.
How Do I Purchase Title Insurance?
Title insurance is usually purchased in a single payment, but it protects you for the duration of the time you own the home. Unlike traditional insurance, which charge annual or monthly premiums, an owner’s policy will provide coverage for as long as the new titleholder is in possession of the property.
Are You an Investor Who Needs a Hard Money Loan in Atlanta?
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