One of the biggest purchases a family will ever make is their home. Title Insurance protects purchasers from obtaining something that is not legal to purchase or that might have other debts attached to it.
There are many situations that can surface. Governmental bodies, contractors, lenders, judgment creditors, and the IRS may have claim to a property, sometimes without the owner even being aware of it.
Sometimes a deed can surface that pre-dates public record, putting a title in question. All these situations will jeopardize the purchaser's rights to the property.
A title insurance policy provides the homeowner with coverage against such an occurrence. Title insurance could mean the difference between actually owning a property and thinking you do.
The first step prior to buying a home is the "title search." This is an investigation of the property, including a title inspection. It involves a thorough examination of records covering any and all recorded judgments, street and sewer assessments, taxes, or anything else related to assuring proper ownership.
Occasionally, however, clerical errors or misrepresentation from previous owners, can prevent an owner from knowing about claims on their property. This is where title insurance comes into play. The insurance is designed to protect your rights and rights to your property. Simply put, title insurance will pay for defending you against any lawsuits attacking your title, and will either clear up the title problems or pay you for any losses you may incur.
Title insurance can be purchased for a one-time premium, ideally at the time you purchase your property.
You should know, that Lender's title insurance only covers the lender and will not cover the owner, which is why we recommend owner's title insurance be purchased. Use this example: You have paid 20% of the cost of your property for a down payment. The loan policy will only protect the 80% investment of the lender. That leaves you responsible for your investment.
Title insurance can protect you from many situations, including forged deeds, releases or wills, undisclosed or missing heirs, instruments executed under invalid or expired power of attorney, deeds by persons of unsound mind or minors, fraud, and liens for unpaid estate, inheritance, and income or gift taxes.
----Our goal in maintaining this blog is to provide you with valuable information, tips, and general insight for buyers, sellers and investors in the Dallas Texas real estate market. If you choose to use Exceptional Realty Services, feel free to call us anytime, we'd be honored to help. We can assist you with the process of finding a home, help with getting a loan, information for relocation, listing and selling your home, investment tips and tools, foreclosure assistance, and short sale information.