Business and Management

What is Title Insurance and Do You Need It?

Home title is as significant as the physical buildings and land occupied. Title insurance provides protection against unexpected claims that may arise after you purchase a property. This makes your secure investment and ensures that you are secure if there is a problem of ownership.

Although it sounds impossible, the unfortunate truth is that the question of ownership is not as common. Every time you buy a home, real estate agent or best national title company will conduct a title search to verify ownership of the newly purchased property.

This examination and a search consisted of collecting and checking for any and all public records involving the title to the property in question. These records include wills, liens, deeds, and trusts and can prove that the property has been properly and legally passed from owner to owner.

The examination also confirmed that all decisions and mortgages on the property have been paid in full. Most often a title search report is clear; however, sometimes a bit of a problem will arise.

Sometimes called 'handicapped' or 'cloud,' these problems are things like a missing signature or the right of way easements and other issues. It must be completed and reviewed before any purchase is considered final.

Just like other types of insurance, though, the title insurance policy may contain certain exclusions and riders. It is important to make sure you know what type of policy you have, what is covered and what is not covered.