HERE IS WHY IT IS NECESSARY TO HAVE A TITLE DEED INSURANCE
This is a form of indemnity insurance that protects lenders and homebuyers from financial loss sustained from defects in the title to a property.
It is actually a type of insurance that protects mortgage lenders and/or homeowners against claims questioning the legal ownership of a home or property.
Title insurance is important because it protects lenders and buyers from financial loss due to defects in the title to a property.
The most common claims filed against a title are back taxes, liens, and conflicting wills.
A one-time fee paid for title insurance covers pricey administrative fees for deep searches of title data to protect against claims for past occurrences that might affect your deed.
Any real, trustworthy, approved real estate transaction must have a clear title to ensure that the property is free from liens and fraudsters. Title companies must do a search on every title to check for claims or liens of any kind against them before they can be issued.
A title insurance policy will cover numerous risks like flawed records, incorrect ownership, and falsified documents.
There are usually two types of title insurance: lender’s title insurance and owner’s title insurance. A lenders Title insurance is designed to protect the financial institution providing your mortgage from title claims that would put their stake in your home at risk. whereas the Owner’s title insurance protects the homeowner in case of any claims against their ownership of the home. In most cases, owner’s title insurance is not required with a home purchase, but it is recommended.
If you want to protect yourself from potential legal costs in the future, then you should consider having one.
