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Most homebuyers or owners come with a common question all the time; “Do I need title insurance? “The answer you’ll get from any real estate expert is a loud “yes”. Some might still be lost and wondering what exactly is title insurance. A title is simply an individual’s legal right to ownership and possession of a particular property. The title insurance was created as a policy to help homeowners or lenders protect their right to ownership against possible claims. To most homeowners, they will rank their real estate properties as the largest asset they’ve ever achieved and can’t in any way be encouraging to see your largest asset fall in to the hands of someone over some fake claims. Every homeowner would go extra miles for the protection of their properties and the title insurance should be your first and major move to make.

Not just important for homeowners, lenders equally require the protection of title insurance to be sure of their investment. If your home purchase is financed, most lenders would require a lender’s title insurance policy. This policy type only protects the lender on the extent of their outstanding balance on the loan. They need a title insurance policy to ensure the protection of their investment.

Having to understand the difference between title insurance and a title search will assist in knowing more on the benefits of a title insurance policy. Title search is only required before settlement while title insurance provides protection after settlement. Title insurance can open up some issues left covered by the title “search”, some of which include; forged deeds or releases, instruments created or fabricated under an expired or fabricated attorney, deeds by minors, deeds delivered after the death with or without the consent of the grantor or grantee, undiscovered easements fraud in execution and many others. The homebuyers under title insurance are known to stay with a clear head knowing that they’re free from all these claims if they happen to arise soon after they close on their purchase.

Other advantages of title insurance include:

  • Protection from some costs, attorney’s fees and other expenses for defending you over any matter insured by the title insurance policy.
  • Provides protection for as long as you and your heirs claim ownership of the property.
  • Protection against certain covered risks without exceeding the insurance amount, some of which includes defect in title caused by:
  • Fraud or forgery
  • Unpaid mortgage and other liens
  • Restriction of access to the land
  • Easements or rights of way, limiting use of the property
  • Unmarketable title

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