Guaranteed Security — 5 Precautionary Reasons To Get Title Insurance
Title insurance is one of those commonly used services that are very rarely talked about.
When you buy a new home or property, ideally you sign some papers and then start moving in. Sometimes things don’t go so smoothly, though.
There are a number of complications that may be more common than you would think, which could cause serious issues before you even move in.
Title insurance can be a real lifesaver in these situations — but like any insurance, you need to have it before the problem occurs.
Here are 6 worrying reasons you may wish to safeguard your purchase.
1.Liens
Liens are legal claims against a property, rather than a person. If the property is transferred to a new owner before the lien is paid, so is the debt.
A lien can be placed on a property by contractors, tax authorities, or lenders who haven’t been paid by the seller.
These issues are supposed to be dealt with before a property is transferred to a new owner, but sometimes they aren’t. That’s how new owners get stuck paying old bills.
2. Encumbrances
This can include easements, zoning laws, or restrictions imposed by homeowners associations and leaseholder rights.
These can be harder to find information on when doing research on your new property, and that can cause a lot of headaches and restrictions down the road.
You may be surprised by details that don’t even seem reasonable, such as losing the right of access to the driveway leading to your new home.
3. Fraud
This can happen in a number of ways, and none of them turn out well if you don’t have excellent insurance.
There have been a number of times when a property has been fraudulently sold by someone who isn’t the homeowner.
4. 3rd Parties
Sometimes the homeowner isn’t the only person who has a financial interest in the property.
If a 3rd party is involved, it may not be obvious until after the home has been sold. They may show up looking for their portion of the payout, or for use of their property.
5. Existing Work Orders
Some homeowners try to sell off their property while they still have unfinished business that could be costly to the new owner.
This could include a wide range of problems, such as open building permits, or a lack of permits for work already done.
When you’re making a large purchase such as a new property, it’s worth a small investment in some insurance to make sure everything goes smoothly.
A professional insurance firm will help you safeguard your investment from whatever surprises may be waiting — from undisclosed heirs to the property and invalid divorces to false affidavits or just about anything else.
Don’t take the risk of losing your investment — the right insurance will give you the security you need and the peace of mind you deserve!
