Even if you do have the necessary time to do a thorough and meticulous title search before buying property, chances are you don’t really have the expertise to conduct such a search successfully. However, when you buy any piece of property, especially a parcel that’s very expensive, you really need to have certainty that the property you’re purchasing is yours and yours alone, with no other party having any claim against it. The best way to have confidence in a clear title to any real estate property is to purchase title insurance, which protects you against the possibility of some unexpected claim arising against your new property.
How does title insurance work?
Unlike other forms of insurance, like auto insurance or life insurance, title insurance does not protect you against future occurrences – it shields you from unanticipated property claims right now. Whether you buy a commercial title insurance or residential title insurance from a title company, there will only be a one-time premium paid in order for full coverage to be in effect. There are no monthly payments to be made, even though coverage continues as long as you own the property.
There are two kinds of title insurance, one of which protects the mortgage holder, and one of which protects the home buyer. Both of these parties benefit from the protection offered by title insurance, because through no fault of either party, some unanticipated claim may appear, and if found to be legally supported, the result could cause enormous financial loss to either lender or buyer. Having a title insurance policy covers just such eventualities, and reimburses the party who would otherwise have suffered serious financial loss.
How does a new home owner purchase title insurance?
As you are preparing for closing day on your new property, you should alert your real estate agent or your legal representative to the fact that you would like to purchase an owner’s policy of title insurance to protect yourself against financial loss. In many cases, your agent will handle that for you, and select a reputable insurance company such as Jones & Raulston Title Insurance to prepare your owner’s policy.
A knowledgeable title company will be sure to have your best interest at heart, and will be aware of all the nuances of ensuring your property for the right amount. The the cost you actually pay on your title insurance policy will not be set by your real estate agent or even by the title company, because premium rates are almost always set by governmental agencies which control those rates.
Title insurance may seem like just one more cost heaped on to an already expensive real estate transaction, but when you consider what might happen if you are unprotected, any price you pay for title insurance will be very inexpensive.