Obtaining insurance on your most valuable possessions is an important responsibility that comes with adulthood. From your health and your car to your home and even your life, insurance makes it possible to endure hardships without severe financial ramifications. There is another type of insurance, title insurance, that you also need to obtain if you are in the process of becoming a homeowner.
What Is Title Insurance?
Buying a house means that you are actually buying the title, or rights, to the property. It’s a simple piece of paper, but the title gives you the full legal rights to occupy your home and use it in whatever manner you choose. Unfortunately, there are many different ways that a home’s title can be difficult to obtain. Whether the previous owners had a lien against the property that hasn’t been paid off, or whether the wrong person signed on the dotted line, a title fraught with complications is much harder to transfer into your name. Title insurance shields you from these significant risks by protecting your home against any past claims, liens, or other problems that existed before you purchased and paid for the property.
It’s a Simple Process
When you hire an attorney or agent to handle your title insurance, he will conduct historical research on the land or real estate you hope to purchase. The search will reveal any problems with the title so that they can attempt to be resolved before closing. If a title problem does not become apparent until after you have closed on your new house, your title insurance policy handles the issue so that you never have to worry about whether you’ll lose the rights to your home.
Protect Yourself From Complicated Situations
Title insurance is mandatory when you use a mortgage to buy your home, but it’s optional if you pay for your house in cash. However, regardless of whether title insurance is required, it is always a wise idea. The cost of title insurance is based on the purchase price of the property, usually $5.75 per $1,000. To ensure that you are fully protected with the right form of title insurance, call North Tampa Law Group at 813-518-7411. The experts at North Tampa Law Group understand title insurance inside and out, so they will push to quickly resolve all of your real estate concerns.