What’s the Purpose of Title Insurance When Buying a Home?

There are a lot of things that you need to know before you decide to purchase your own home. Mainly, it is not that simple, and whoever tells you otherwise, tells you that everything can be “done in a day”, you have to know that there is something they don’t want you to know.  For example, you always have to do a background check of that property, like who owned that place, when it was built, did the place have some major repairs and interventions, etc.

In one word, it’s nice to know the history of the place you want to buy, because after all, you and your family will live there, and you don’t want some unexpected legal issues to show up. Buying a home is more than a serious investment. Being in a position to actually own the roof over your head it’s a privilege and a right given by the Universal Declaration of Human Rights.

That’s why making that lifelong investment is a serious thing and you have to be able to predict every possible positive and negative outcome of that right. One of the most intriguing things you need to know about a certain property is the title. Now we will explain to you what title ownership is, and what the purpose of title insurance is.

Clean ownership

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There are a couple of things that you need to know about title ownership. The most important thing is understanding what it is and how you can use it to your advantage. Basically, this means that at the moment you buy a certain property, you want to have clear ownership of that place, and not to be forced to pay penalties or some other hidden expenses for something that some previous owners of that place left.

What you want from your new home is for you to have a thing called “clean ownership”. Clean ownership means that you are starting from the very beginning, and every possible debt that’s connected with the place you want to buy, is going to be a problem for the previous owner. This is very simple and it can be done by signing title insurance before you purchase the property.

Protection from fraud, scams, and misinterpretation

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To be protected from possible title fraud, scam or misinterpretation is a very good thing you can achieve by having this type of coverage. You will be amazed how far can people go and what stories they will make only to confuse you and take advantage of everything you own. For example, people who know how to forge certain documents can really damage the ownership of your home, and now only the ownership, but also they’ll endanger your right and the right of your family to live safe and secure in your own home.

Now, this is a damage that can be undone, but not very easy, because, starting from the moment you find out about the fraud, a lot of time could pass. In that time, the perpetrator can collect a certain number of documents that can endanger your ownership. Now, we know that this sounds scary, and it is, but you can prove that you are a victim of a fraudster at court, but that can cost you a lot of money, having in mind that you have to find a good lawyer to represent you and your interests, and maybe the most important thing time.

Now, all this can be escaped by owning title insurance. It is not difficult to get this type of coverage, and the best thing about it is that the experience is scalable, so you don’t have to worry about getting into things that you don’t want to sign, or having to accept parts of the agreement that you don’t want to pay for.

Find more information about it on https://www.sunnysidetitle.com

Protects you from any unpaid debts

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There are various debts that can be tied to one property, for example, unpaid taxes, mortgages, utilities, etc. You have to know that these unpaid debts are tightly connected to the property and they cannot be written off as long as the property exists. So, no matter who owns the property, the state, the country, or even the bank, no matter who the creditor is, they will come to collect their debt no matter what.

Now, if you inherit a debt in any form from any previous owner, you will have to pay that debt. After that, you can go to your title coverage company, and collect what you are owed. But, before you do that you have to know one thing: an unpaid debt from any previous owner, can be claimed from the title insurance company, only if you and your real estate agent didn’t know about that unpaid debt.

If you were acquainted and you were told that there are a certain amount of debts unpaid BEFORE you bought that property, then you have no right to ask for compensation for those debts. That’s why is important to be familiar with every financial background of that house, and that’s also a good reason to buy yourself a title coverage policy. Understand that there are different types of it and that you need to talk to your agent before choosing the best one for you. Doing your research beforehand is a must, and it is advised to finish this process before you even start looking for new properties.

Experts suggest that this is something that is going to be beneficial for every individual that chooses to purchase a new home that was owned before. We all know how easy it is to forget about a bill or two, we know how easy it is to get scammed, and unfortunately, we are aware that there are people who just want to get the best for themselves without thinking of anyone else and how they might hurt them.

Instead of wondering how you can pay the debt off that’s not even your own debt, and instead of wondering how you are going to survive the month or keep the house because someone else tricked you, it is better to stay protected and invest in this type of coverage that will help you sleep more soundly.