Monday, February 10, 2014

Guide To Title Insurance For Your Home Purchase

When you buy a home or other real estate, the title company will search the public land records to make sure the seller is the legal owner of the property. If the title company finds a problem like an incorrect deed or a lien on the property, it can be fixed before closing. Most people don’t run into title problems after they buy a home, but it does happen. This is why you should have title insurance.
  • Types of Title Insurance. Title insurance falls into one of two categories: lender’s title insurance and owner’s title insurance. If you get a loan to buy your real estate, your lender will require a lender’s policy based on the amount of your loan. An owner’s policy is purchased at closing and lasts as long as you hold an interest in the property.
  • What it covers. A basic title insurance policy protects you from any problems with a title that were not found during the title search. Human error can lead to mistakes on public records and forged deeds. This can and does happen. Names and legal descriptions are recorded incorrectly, back taxes may be owed, and people die without wills specifying their heirs.
  • How it helps you. Say, for example, that you buy a home with a utility easement in the backyard, and the title company did not disclose this. You may not be able to add on to your home or build a swimming pool in your yard because of this easement. This devalues your property, and the title company will have to correct this situation for you. In this case, your title insurance will cover the claim and protect your investment.

As your real estate agent, I will help take the guesswork out of the closing process. Let me help you find the real estate that fits your needs. Call me today at 832-200-5676 or email me at RichardSkotak@remax.net.