Wondering why you may need Title Insurance?
It is a good idea to stay covered in case there is a defect in your property's title. A title search can reveal these defects that may have been hidden in your property's history. Depending on the terms of the policy, title insurance can make sure you stay protected in the event that you discover problems with your title after closing.
Errors in Public Records
It is not uncommon for there to be an error present in your public records. A simple error can put your property at risk, and can cause unwanted financial repercussions.
The old owners of your home may not have kept the best track of their finances. This can come as a problem later on, especially if the previous owners weren't the best bill-payers. Even after you close on the sale, banks or financial institutions can place liens on your property for debt accumulated in the past. This is especially important in the case of a distressed property.
While the chain of title o your property may appear perfectly normal, there is a possibility the deed is corrupted. In some cases, it could have been made by an undocumented immigrant, a minor, or someone who incorrectly stated they are married, but are single. This affects the enforceability of prior deeds, which affects the prior owner, and possibly the current owner.
These and other issues are often covered by an owner’s policy of title insurance. When you purchase a property, make sure you protect your investment with title insurance.