When going through the home buying process, the subject of title insurance will come up. If it’s something new to you, it’s definitely something you will want to research before purchasing. But purchase it you must in order to make sure all your bases are covered.
Every property has a history and you need to be aware of it. A comprehensive title search can help you determine if there are any issues connected to your property. Title insurance gives you protection from any problems that may come to light after the purchase of property is complete.
Some of the most common title issues are:
- Undiscovered liens. Not everybody keeps detailed records and there are plenty who don’t pay their bills on time – or at all. No, that debit wouldn’t be yours but did you realize that banks or other financial institutions could place liens on your property for any unpaid debt – even after the sale is complete?
- Public record mistakes. The last thing you want to discover is that filing or clerical errors can cause issues with the deed or survey of the property. This can also result in you having to pay whatever amount is necessary to remedy the situation.
- Missing heirs. Many people name relatives or friends as heirs so that property they own might go to them in the event of their death. Sometimes, though, those heirs are difficult to find or family members might contest the will in an attempt to take ownership themselves. This can happen years after you purchase the property and could affect your right to ownership.
- Believe it or not, there are those who have no issues at all with forging documents regarding property and its ownership. If a forgery occurs it can jeopardize your rights to the property.
- Unlawful deeds. Prior deeds made before you purchase the property could be made by a minor, a person who isn’t in their right mind, someone who is married but claims to be single or an undocumented immigrant. In any of these situations your ownership could be questioned.
- Disputes over boundaries and surveys. Certainly you have seen a survey of your property… however, others surveys may exist showing different boundaries that could challenge your ownership of the property.
- Undiscovered will. If you buy property that was sold under the assumption that the previous owner who died had no will and then years later, after you buy it, one is located, your ownership of the property can be questioned.
- Impersonating an owner. Names that aren’t unusual or similar can make it easy to falsely claim to be the owner of property. You can risk losing your right to the property if this occurs.
- Undisclosed easements. Even if you own your property and home, if an unknown easement turns up, it may keep you from using it the way you would like. It could also make way for other parties to access your property. This could cause issues regarding your use of the property.
- Undisclosed “owners.” You could buy property and because of a past mortgage or lien on it, a third party could claim rights to it and it could limit your use of the property.
The easiest way to avoid any of these situations is to simply do the smart thing and purchase title insurance. It could save you a lot of headaches, time and money.