Property owners’ guide to understanding title insurance and its advantages.

Have you ever wondered how secure your ownership is in your new property? Imagine buying your dream home only to find out there's a hidden claim against it that threatens your investment. This is where title insurance comes into play.

Unlike homeowner's insurance or auto insurance, which cover future events, title insurance covers future claims or losses due to events that occurred in the past before you owned the property. 

When purchasing a property, there are typically two main title insurance policies involved. The Owner's Policy is paid for by the seller and covers your interest in the property once you close the transaction. On the other hand, the Lender's Policy covers the lender's interest in the property after closing.

“Protecting your property means preparing for the worst through title insurance.”

Before closing a transaction, a title company conducts a public record search to check for any outstanding liens, claims, or defects that might affect your ownership of the property. This search identifies issues such as unpaid taxes, outstanding mortgage balances, or court judgments that can impact your property rights. Despite a thorough search, title insurance can't guarantee absolute protection against past issues, which is why it's essential. 

If a covered issue arises after you own the property, your title insurance policy steps in to defend your rights to the property if challenged. The policy will also cover the legal expenses to resolve disputes. Plus, you will be compensated for financial losses incurred due to the covered issue.

Title insurance offers peace of mind by ensuring that your ownership is protected against past issues that might surface. Without it, you risk losing your investment due to undisclosed claims or legal complications. It defends your ownership, covers legal costs, and compensates for losses. So, if you have any questions about title insurance for your property, feel free to reach out to us. We are here to help you understand and navigate the complexities of real estate transactions. Just call 269-350-5514 or email sold@veenstrateam.com. I look forward to talking with you!