Why do I need Title Insurance?

Rick Sheppard
Published on February 23, 2020

Why do I need Title Insurance?

When buying real estate, it is strongly recommended that you also buy title insurance for the property you are buying.  If obtaining a mortgage when buying a home – title insurance will be a requirement.

Many people ask… what exactly is title insurance?… can I avoid that added expense?… and why do I need title insurance, anyway?  Here’s a quick overview on title insurance that should help to answer those questions.

What is Title and Title Insurance?

“Title” is the evidence, or right, that a person has to the possession and ownership of real estate.  Title insurance is issued after the examination of public records and provides protection from claims or defects against your title.

What Protection does Title Insurance Provide?

Know this: even the most diligent search cannot absolutely assure that title hazards do not exist.  That said, a title insurance policy protects you against claims or defects that existed prior to the issue date of the policy.  Title insurance will pay for defending against any claim and/or lawsuit attacking the title as insured, and will either clear up title problems or pay the insured’s losses.  When you purchase title insurance, the policy remains in effect as long as the insured retains an interest in the property.

What does Title Insurance Protect Against?

Title insurance protects against risks such as creditor claims; forged deeds, releases , or wills; false impersonation of the owner of the property; missing heirs; mistakes in recording documents; invalid power of attorney documents; deeds signed by people of unsound mind; liens for unpaid taxes; incorrect legal descriptions…and the list goes on.

In closing, don’t hesitate to contact an attorney and/or a title company representative at any time you have a legal and/or title related question.  An if you are ready to buy or sell a home, feel free to contact me, Rick Sheppard of RE/MAX Achievers.  I have extensive real estate experience.

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