Buying a home is an exciting step, but it can also be stressful. One way to ensure a smooth and safe transaction is to purchase title insurance. Title insurance is an important yet often overlooked part of the home buying process, as it protects you from any potential issues that may arise with the title of your property. Read on to learn more about why title insurance is essential for every new homeowner.
What Is Title Insurance?
Title insurance is a type of insurance policy that covers losses due to defects in the title of your property or any problems that may arise from ownership disputes. It helps protect you from any financial losses caused by those issues and can be used to cover the cost of defending against lawsuits related to your property’s title or rightful ownership. In addition, title insurance provides coverage against mistakes made during the search process and incorrect information in public records concerning prior owners’ rights and interests in your property.
Types of Title Insurance
There are two main types of title insurance policies available – owner’s policies and lender’s policies. An owner’s policy typically lasts forever and covers both parties involved in a real estate transaction (the buyer and the seller). It will protect you if someone else claims they own part or all of your property, or if there are any liens, judgments, or encumbrances attached to it. A lender’s policy typically only lasts until you pay off your mortgage loan; however, this type of policy is usually required by most lenders when you purchase a home with a mortgage loan.
The Role of Real Estate Lawyers
Real estate lawyers play an important role in helping buyers secure their title insurance policy. They review documents related to the sale or purchase of the property, explain legal terms you don’t understand, and handle negotiations between buyers and sellers. A real estate lawyer can also handle closing paperwork on behalf of either party (or both), provide advice about financing options, and help draft contracts for services related to maintaining or improving your new home after purchase.
House model with agent and customer discussing for contract to buy, get insurance or loan real estate or property.
Title insurance helps protect homeowners from financial losses due to problems with their property’s legal title or rightful ownership. Having adequate coverage through an owner’s policy will ensure peace of mind if a dispute arises over ownership rights down the line. In addition to securing a quality title insurance policy before purchasing a new home, seeking out professional legal counsel from experienced real estate lawyers can also help make sure everything goes smoothly during the entire process—from searching for properties all the way through closing day!