Getting a title is one of the standard requirements of purchasing a home. A title confirms that you have received ownership rights for the property from the seller.
What Title Insurance does, is uncovers any mortgages, back taxes, liens, or judgments, against any prior owners. They also search and look for fraudulent claims on real estate which cannot be discovered by public records.
"Title insurance is crucial for a home buyer because it protects you and ehe lender from the possibility that your seller doesn't -- or previous sellers didn't -- have free and clear ownership of the house and property and, therefore, can't rightfully transfer full ownership to you. Even though the chance of calling on the insurance for coverage is relatively low, the value on what you stand to lose if you go without coverage is high -- you could, in fact, lose the house itself."
For example, if someone tried to claim your home, using forged documents, conflicting wills, or an error in the records regarding legal descriptions, etc...these contingencies would be covered in your title insurance policy.
Who pays for the policy is a negotiable part of the sales contract, but the seller usually pays as part of their closing costs. Prices vary from state to state - you can expect to pay somewhere between $1,000 and $4,000 for title insurance, according to CourtHouseDirect.com, a courthouse data research website.
For more information on Title Insurance, please contact us.