Milton Real Estate News

Never skip the title insurance!!!

January 11th, 2016 9:07 AM by Kathy McDevitt

Home Buyer Tip: Don't Wish You Had Bought Title Insurance

Want to save the sale of your home? Buy owner's title insurance at the time of your purchase.

300x250 House Question Marks.jpgWhenever someone contacts me regarding the sale of their home, they often ask what they can do to assure a successful and smooth transaction. They are usually surprised to learn that the answer dates back to when they purchased their home. The answer depends on whether or not they bought an owner’s title insurance policy.

Home ownership in legal terms can be quite complicated. Ownership from a legal perspective is not just about having a deed to your property. In order for your deed to pass without problems to the next owner, you need to have “clean” title. Think of title as a chain; each link in the chain is a previous owner who conveyed their rights to the next owner and so on.

When buying a home, after you sign the purchase & sale agreement, yourattorney will do a title search.

The title search may be complicated and goes back at least 50 years. It is a comprehensive review of the public record on all the past owners to make sure that each seller of the property correctly conveyed the property to the next owner. It is called a “chain of title search.” This search will include checking each grantor (seller) and grantee (buyer) on every deed, checking easements and restrictions, tax liens, discharged mortgages, lot and plan info, probate records and many, many other areas of the title to make sure the chain does not have any missing or damaged links. If the links are damaged, you will not be able to sell your home until they are fixed. In the worst case scenario, fixing a title defect can cost thousands of dollars and take many months to correct; it can destroy your sale.

An owner’s title policy will protect the homeowner from many of these issues. Just because a title exam was done correctly doesn’t mean the title is clean. An example of this would be if a document in your chain of title was forged or there are missing heirs with interests in the property. These issues will not be found in a title search because they will not be in the public record.

In case of a covered title defect, the title insurance company will indemnify the buyer of your purchase, and pay to fix the title issue. This will allow you to continue with the sale of your home and avoid any unnecessary stress. An owner’s title insurance policy is a one-time fee at purchase and is good for as long as you own your property.

You insure your car; why not make sure your largest asset is protected as well?
Source:  BLUE Inc.

Posted in:General
Posted by Kathy McDevitt on January 11th, 2016 9:07 AM