When homeowners purchase property without the expertise of a real estate attorney, they can encounter issues within the title that can affect their ownership rights. Title insurance takes care of all undiscovered issues that can arise in the chain of title.
When purchasing a home, it is always a smart idea to utilize the owner’s title insurance. “Why,”, one might ask? Here are 7 reasons you should purchase Owners’ title insurance when you purchase your next property:
1) Buying a home is a big investment.
Owners’ title insurance help protect against defects or problems with a title when there is a transfer in the ownership of property.
2) Sellers don’t always have full ownership or the ability to sell.
Fraud, forgery, incapacity, impersonation or the seller’s lack of ownership can all be discovered using an Owners’ policy.
3) Even if the seller warrants (or guarantees) good title to the buyer in the deed, the seller may not have the money to pay the losses if a problem arises.
When purchasing an Owners’ title insurance from First American Title, the buyer has the financial power of First American to protect them against loss from covered claims.
4) Some policies cover more than just ownership.
Depending on the type of policy issued, coverage insuring against loss due to disputes over boundaries, access rights and easements may be provided to the buyer. Ask about available options for extended or expanded coverage.
5) A lender’s title policy does not cover everyone.
Lender’s policies of title insurance only provide insurance to the lender. A homeowner is not covered and cannot make claims.
6) Claims are expensive.
Title disputes are not cheap. Paying lawyers to fight in court can add a high level of expense. With title insurance, coverage for legal expenses is included in case it becomes necessary to investigate, litigate or settle an adverse claim.
7) Coverage for a one-time premium.
The premium for Owner’s title insurance is only paid once and covers the buyer for as long as they hold an interest in the title to their home. The coverage automatically continues for the benefit of their heirs as well.
When buying a home, homebuyers have a set of expectations. Buyers want the transaction to be as low-stress as possible. When all the documents are signed and the keys have changed hands, they want the ability to occupy property and to do so free from debts and obligations not agreed upon by both parties. Most importantly, homebuyers want no surprises during or after the transaction, with the freedom to sell their property when they see fit.
Owner’s title insurance protects property rights by insuring against any surprises that may arise after the purchase of a home. Shouldn’t homebuyers want to work with someone that has the experience to protect their clients from real estate disasters? Reach out to Johnson, Murrell & Associates for a free consultation today.