No one enjoys paying insurance premiums, but there’s no doubt about the fact that it’s nice to know that you’re covered. This is particularly true when you’re making a major purchase such as a home or other real estate. There are so many things that can go wrong over the time that you own your home or real estate, you owe it to yourself to enjoy true peace of mind.
When you’re purchasing a new home or an investment property, a lot of work has to be done before the deal can be officially consummated. Professionals need to be engaged to prepare for the closing of the transaction, and these professionals must work together to communicate and properly document progress and legal requirements in advance. Most real estate transactions are straightforward, and both parties have an interest in a smooth transaction. Unfortunately, that doesn’t mean that things can’t go wrong. That’s why title insurance is always an important way to protect your investment.
There are a lot of steps that go into purchasing a home, and one of the first is a thorough title search. Over the life of a property, each time the title changes hands, there are a lot of things that can go wrong. These problems are known as “title clouds” and they must be resolved before the property can be sold. If the seller owes delinquent taxes, HOA dues, or unpaid child support, there could be liens on the property. The title search will help identify if there are liens in place, and afford the parties to resolve the issues in order to complete the transaction.