If you’re investing in real estate by buying a new home or commercial building, chances are you’ve already done a lot of research. But one of the most important parts of securing your real estate investment is protecting it with insurance—especially title insurance in North Carolina.
Like every other kind of insurance, title insurance protects your investment. In the event that an issue arises with your title, your title insurance policy will protect the amount of money you invested in the property. This way, if there ends up being an error or issue with your property’s title, you don’t lose all the money you spent buying it.
While title insurance is not required to purchase a home in North Carolina, it is still one of the smartest business decisions you can make in real estate. Here are five reasons why it pays off to have title insurance in North Carolina.
Peace of Mind
A house is a big purchase. Shouldn’t you do everything you can to protect that investment? One of the biggest perks of having a title insurance policy is the peace of mind it grants you as the property owner.
You wouldn’t skimp on homeowners insurance, so why would you forego title insurance in North Carolina? The title to your property represents its ownership. You have to own the title to own the property, but there are actually a number of different issues that may arise with your title that can harm you financially.
Protection Against Unpredictable Events
Title insurance protects you financially against the unthinkable. Like other kinds of insurance, it’s something you want to have that you hope you never have to use.
The primary issue that might arise with your title is authenticity. If it’s an older property that’s been through more than one different owner over a long period of time, it’s especially important to make sure your investment is properly protected with title insurance.
Here are some of the potential problems that may occur over time with a property’s title. Title issues are unpredictable and they often don’t have an easy solution, if they have a solution at all.
- Error in public records that prevent you from actually purchasing the property
- Forged signatures that negate any sale or purchase
- Unknown or hidden liens or other charges against the property owner
- A missing heir who appears to claim ownership over the property
- Boundary or survey disputes
These are some of the most common problems that arise with a property’s title, but they are not the only ones that come up. For more examples and information about your property’s title, please don’t hesitate to contact our team here at Tryon Title.
It’s Required for Borrowing
In North Carolina, you are actually required to have title insurance if you take out a mortgage loan. There are two kinds of title insurance that one can have, a lender’s policy or an owner’s policy.
When you take out a mortgage loan to pay for your new property, you will have to take out a lender’s policy. This protects the lender in the event that an issue arises with your new property’s title. This policy lasts for the duration of the time you have an active loan with the lender.
The owner’s title insurance policy, on the other hand, protects you for the entire amount of time you maintain an interest or stake in the property. This way, if an issue arises with the title after some period of time, you won’t lose all the money you put into the property.
Thorough Title Search
Shouldn’t you know the entire history of your new home? When you purchase a title insurance policy, the title insurance agency will perform a thorough search on your new property’s title. The title search can uncover any hidden issues, unknown liens, or other problems that may arise with your property’s title.
A title search is one of the most surefire ways to ensure the title of your new property is clean, and that it is a worthwhile purchase.
A Team of Professionals on Your Side
When purchasing title insurance in North Carolina for your home, it pays to be prepared. One way to guarantee a successful real estate transaction is by working with a title insurance agency with years of experience, highly skilled underwriters and researchers, and a legacy for greatness in North Carolina.
Have any questions about title insurance for your upcoming real estate purchase? Whether it’s commercial or residential real estate, Tryon Title is here for you. Give us a call today for more information!