Basics of Property Management: Screening Potential Tenants

The Reasons You Need Title Insurance Before Closing On Your New Home

16 August 2016

Jesse Obrien

Buying a new home is one of the most exciting and stressful times you can experience, even more so if the home you are buying is your first one. However, making sure your purchase is covered with title insurance is extremely important. Imagine that you are ready to close the deal on your new home only to learn the seller didn't legally own the home, but only rented it. You stand to lose a great deal of money and your new house along with it. Learn more about title insurance and some of the reasons you should never enter a home purchase without it.

How You Can Secure Title Insurance Coverage

Your real estate closing agent can secure your title insurance when you sign the agreement of purchase. Most of the time, a closing agent or real estate attorney can choose a title insurance provider for you. Making sure you have title insurance before closing the deal is important for more reasons than someone trying to sell a home they actually rent from someone else. Some of those reasons might include:

• A seller may have co-signed with a family member they no longer talk to and are not aware that person will need to sign before the home can be sold. 
• A seller may have inherited the home in an outdated will and it turns out the home was actually left to someone else in a more updated will later on—the actual owner may not want to sell the home.
• The home may have a lien against it because the seller owes for a loan or that person owes child support or outstanding tax debts.

The Peace Of Mind That Comes With Title Insurance

Knowing you can walk into closing without the worry of losing your money because a title search turns up a long-lost relative or other problem is a good feeling. Your title insurance will cover the losses you may incur if a real estate deal goes bad, the best reason to never enter into a home buying deal without it. Before you sing a final purchase agreement, discuss with your closing agent or real estate attorney about the title insurance coverage they will secure for you so you will know for sure it will be taken care of.

By ensuring you are covered by title insurance, you can rest assured your home buying experience will not only be exciting, but financially safer as well. For more information, contact local professionals like TitleSmart.

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