You don’t need to be reminded about the importance of car insurance, health insurance, and life insurance as methods to keep you and your loved ones financially protected in the case of an emergency. However, you may need to be reminded about the importance of title insurance as you prepare to purchase your new home. Title insurance isn’t likely at the front of your mind as you worry about obtaining a loan, seeking out the perfect home, and negotiating down to your ideal price… but it should be. Title insurance is an essential component of the home buying process thanks to the protections that it affords you.
Title Insurance Ensures Your Home Is Really Yours
A home cannot be transferred into your name without a clear title, but there is always the chance that your seller actually lacks- or a previous seller lacked- free and clear ownership of the house and property. If you unknowingly purchase a home that does not have a clear title, you could lose everything, including your investment and the home itself. Title insurance is a form of indemnity insurance that prevents this nightmare from happening to you.
Protect Your Largest Investment
Title insurance involves a relatively low one-time cost rather than recurring monthly premiums. The fee provides you with a wide range of protections. Your closing agent or attorney will help you get the title insurance process started. First, your attorney will search property records to ensure that no problem exist with your title, such as clerical errors, mistakes in records, undisclosed heirs, omissions in deeds, unknown liens, or blatant fraud. This part of the process confirms that the seller truly owns the property and can legitimately sell it to you.
The second portion of title insurance protects you in the future. If anyone ever challenges your title, or if new information surfaces that proves you purchased an illegitimate title, your insurance will compensate you for any equity that you lose in the process. Though it is very unlikely that this will happen thanks to the due diligence of your attorney in the first portion of the process, it’s still important to maintain this component of protection.
The North Tampa Law Group in Tampa, Florida specializes in title insurance services. If you are ready to purchase a home, be sure to utilize the responsive and dedicated services at North Tampa Law Group to ensure your largest and most important investment is fully protected. Call (813) 452-4635 today to obtain your quote!