While title insurance might appear to be an unnecessary expense, title insurance is almost always a requirement if the buyer is purchasing property with someone else's money. The reason for this is that even though the purchaser receives a deed for the property, it doesn't always mean that there is one legal owner. Prior owners, their spouses, partial owners, and creditors who have a stake in the property could come forward at any time and claim their share of the property, leaving the purchaser with a debt they are not responsible for. Title insurance protects them and their lending institutions from financial loss due to unforeseen title defects and liens.
A title insurance company will defend the insured if a lawsuit is filed. It will reimburse insured parties for monetary losses if there are errors on the property deed that need to be cleared from the chain of title before the purchaser and their lending institution can have a clear title on the property.
When working with an established title company, such as Title Junction we can make the difference between a smooth transaction and one riddled with problems, we are here for you!
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