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Why Is It Important For Homebuyers To Have Title Insurance?

Why Is It Important For Homebuyers To Have Title Insurance?

The challenges of buying a home

Buying a home is a challenging task. Homebuyers need to gather many documents. Banks will issue mortgages based on proof of income, credit history, amongst other papers they will request from you. 

And if everything goes right, the seller signs a grant deed to transfer real property title to the new owner. Unfortunately, many homebuyers think that once they have a title in their names, the ownership of their property is final and unconditional. But the truth is more complicated than that. 

Titles might not be final

When homebuyers purchase a property, they also assume ownership of its title. Therefore, any issues with the title, such as an outstanding mortgage or a previous owner’s unpaid taxes or judgments, can affect the homebuyer’s ability to take possession of the property, sell it in the future, or even face legal challenges from other parties.

So that is why we highly recommend the purchase of a Title insurance policy. Title insurance provides coverage for a range of potential issues, including:

  1. Errors or omissions in the title search process could result in missed liens or other claims against the property.
  2. Fraudulent activity, such as forged documents or identity theft, could result in someone else claiming property ownership.
  3. Unknown heirs or undisclosed interests in the property, could result in competing claims to ownership.
  4. Boundary disputes or other zoning violations could affect the use or value of the property.

Title insurance can save you money and headaches

Having title insurance can help homebuyers avoid potential legal and financial complications related to the title of the property they purchase. It is generally a one-time cost paid at the time of purchase and provides coverage for as long as the homeowner owns the property.

We have a program to explain everything

At The Cal Agents, we cover these and many other topics about home buying in our monthly Real Estate 101 classes. This program aims to educate first-time home buyers about how they successfully face the challenge of buying property. 

To register for this FREE program, click here and enroll in the next available session. And if you are already a homeowner and want to discuss the best way of using your property soon, click here to schedule a no-obligation appointment with a member of The Cal Agents Team. Appointments can be made in person in our conference room, via Zoom, or over the phone. 


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