Whether you are buying a home for your family or as a financial investment, you need to make certain your investment is protected. Title insurance protects you against problems that may arise from the recorded or unrecorded documents of a property. At Liberty Title, we specialize in providing protection so your investment is completely safe against title issues. We’ve put together this guide to help you understand how title insurance safeguards your investment.
Property Title Problems
When you are buying property, you want to make sure everything goes off without a hitch. But one of the biggest issues occurs when there is a problem with the property’s title or lien. In a perfect world, your new home or investment property will have a completely clear title. Essentially, this means the owner of the home is selling you a property where there are no legal questions about who the property belongs to. Any number of claims may arise against the property title.
Finding Title Ownership Claims and Defects
Even if you have done everything you need on your end, there may be problems with the history of the home’s ownership or paperwork that could place your investment at risk. During the home purchase process, your property’s title is examined for any problems in its history. However, the claims or title ownership defects that cause problems for owners do not arise during the purchase process, but rather months, or even years down the road.
In addition, problems can also arise with a property’s boundaries. Sometimes, additional surveys for a home can exist showing different property lines, possibly leading to serious disputes years later.
Four ways a title problem can cost you down the road:
● Time spent in court
● Lawyers’ fees
● Court costs
● Loss of property
Additional Title Problems
Even after a title company’s research has shown a marketable title, claims can come from liens, levies or other debt. Creditors or lenders may also place a claim against the ownership of a property. If your property has an existing lien attached, this responsibility may fall on the new owner. Foreclosed properties are particularly vulnerable to these problems.
Protecting Your Investment
Past title researchers may have made mistakes or oversights when researching a property’s history, possibly harming your investment. However, Title insurance can help you identify any existing problems, giving you a chance to remedy these liens or title defects before they negatively impact your investment.
Other examples of title problems that can arise:
● Missing heirs
● Forgeries or fraud
● Public record errors
● Filing errors
● Survey or deed mistakes
Twin Cities Metro Title Insurance Pros
Our team of Title Insurance experts at Liberty Title can help ensure your ownership transition goes smoothly as possible. We protect property owners from unexpected problems with their titles, leaving them free to focus on the excitement of new homeownership. Whether you are in the process of purchasing a new home or are a seasoned investor, we have your back. Give us a call at 763.494.0340, or contact us online to find out more about how we can help protect your investment.