Finally after years of making and saving money, you are proud to own a home. Negotiating with the seller was a breeze. It’s all right, you tell yourself during your housewarming party. After that, a court order comes asking you to vacate the property, turning the dream into a nightmare. Turns out your new home is tied up in an old legal case.
Many property owners end up in such unexpected legal battles because they either weren’t familiar with the title insurance or chose to ignore it.
What is property insurance?
It is an insurance cover for the property owner in the event of loss incurred due to defects in equity, which includes property taxes owed from previous owners, false or invalid title documents, lack of access to the property, or heirs who have a valid claim to the property but have not come. Forward, other factors that appear after the purchase of the property.
With properties changing rapidly, buyers tend to overlook important details. This can lead to problems later on, including court settlements, legal fees, and, in some cases, property loss. Taking this type of insurance will help you avoid such problems.
The process of obtaining property insurance
When title insurance is obtained, a title search is conducted prior to purchase. The research is usually done by an experienced real estate attorney or a representative of a property insurance company. They perform thorough checks on documents filed at the local land records office, to ensure there are no property defects such as foreclosures, property taxes, mortgage pending, defects in previous title transactions, and other issues that threaten the property of the insured parties.
If the property passes this check, the insurance is granted, and the property can then be purchased. The responsibility to conduct a thorough property search is now the responsibility of the insurance company. After the insurance is granted, any loss incurred in defending the property will be dealt with by the company. Not only will the insurance company cover your legal fees, but they will also refund the amount you invested in the property in the event that it is seized.
Choosing the right insurance company
Insurance rates vary from company to company. Search and compare the different policies offered to get the best deals on your property.
When you choose a company, be sure to start by talking to some of their clients. Do your homework. Gathering information related to the provided policies. Some companies offer discounts in some cases. Find out if you qualify for it. Information about how the company resolves property disputes and its success rate will help you make a decision.
Another thing to do when purchasing this type of insurance is to make sure you understand what the policy has to offer. If you are not familiar with the legal aspect of the process, it is advisable to get a trusted attorney to check the document before you sign it.
With property scams increasing day by day, title insurance on your property will give you peace of mind. Plus, if the property is ever challenged, getting an insured title deed won’t leave you fighting in court.