When you’re buying a new home, the purchase price is typically the largest and most significant expense that you’ll have. One related expense to your home purchase that is extremely important and is not something to consider trying to “get by on the cheap” for is title insurance.
Buying a home or investment property is usually a big decision, particularly as you weigh the pros and cons of each property, and decide on a fair offer. But once the seller accepts your offer, the real work begins!
When you’re purchasing a home or investment property, a title insurance policy is a great investment. Most real estate transactions are made in good faith, and closing typically runs smoothly. Unfortunately, most properties have changed hands a lot over the course of their lifetime, and the potential for problems with the title transfer increases with each sale. Many times, it might simply be misfiled paperwork, but occasionally there can be bigger problems, such as fraud, forgery, or even unknown heirs with a legitimate claim to the property. These title defects are commonly known as title clouds, and without a title insurance policy in place, you run the risk going through the lengthy and expensive process of resolving them at your own expense.