Basics and Importance of Title Insurance

Basics and Importance of Title Insurance
Title insurance is a critical component of the home selling process, yet
many homeowners do not fully understand what it is or its value. Simply
stated, title insurance protects both buyer and seller from any potential
issues with the property’s title. When selling a home, obtaining title
insurance offers peace of mind to all parties.
Title insurance acts as a safeguard against potential defects in the
property’s title. These defects can include liens, unpaid taxes, undisclosed
heirs, or simply errors in public records. Without title insurance, a buyer
could find these issues haunting them after the close, leading to costly legal
issues or financial loss.
One of the primary reasons for buying title insurance is to protect against
any claims that arise after the close of the sale and when the seller is long
gone. Even if a title search is conducted during the escrow period, title
insurance is a way to provide a safety net, with potential missed issues or
undeclared claims.
Title insurance may seem like another fee that lenders require to charge
consumers more, but the fact is it is an essential protection for all parties.