Thursday, January 31, 2008

Don't Invest Without Title Insurance

As someone who buys and sells real estate I understand the value of title insurance. What is title insurance and why is it necessary? Well title insurance is basically insurance that the title for the real property is clear. It is of utmost importance that you receive clear title to the property when you purchase real estate. In order to do so, you must first be informed of any existing rights or claims that may, in the future, threaten your title and possession to the property. Title insurance provides you with this twofold protection.

Those who may have an interest in or lien upon the property could be governmental bodies, contractors, lenders, judgment creditors, the Internal Revenue Service, or various other individuals or corporations. The real estate may be sold to you without the knowledge of the interest bearing party having a right or claim in and to the property. In addition, you may purchase the real estate without having any knowledge of these rights or claims. In either event, these rights or claims remain attached to the title of the property that you are buying until they are taken care of.

Title companies will do a title search to find the existence of recorded defects, liens or encumbrances upon the title such as unpaid taxes, unsatisfied mortgages, judgments and tax liens against the current or past owners, easements, restrictions and court actions. Once reported, these matters can be accepted, resolved or extinguished prior to the closing of the transaction. You are also protected against any recorded defects, liens or encumbrances upon the title that are not reported to you and which are within the coverage of the particular policy issued by the title insurance company.

Title insurance gives you the assurance the title to the property you are purchasing is clear and problems have been called to your attention and can be corrected before you buy. Additionally, it is insurance that if any undiscovered claims covered by your policy show up out of the past that threaten your ownership of the real property, it will be taken care of, or you will be reimbursed exactly as your title insurance policy provides.

later all and have a profitable and productive blogging day

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