Let’s say you’re buying a home. First of all, congratulations! This is an exciting life decision, and we know you’ve been working toward it for a long time. That’s why it’s so important to protect your investment with North Carolina title insurance.
Just like you need homeowners insurance to protect your home from fires, storms, and other natural disasters, you need title insurance just in case something is wrong with your home’s title. If an issue arises with your title in the years following your purchase (whether it’s a former owner disputing your right to it or a costly lien filed against it), you may be in trouble financially. That’s where title insurance comes in.
Here’s the rundown:
What is Title Insurance?
Real estate is a huge investment—whether it’s a new construction home or a vacant plot of land. Because it’s such a big purchase, any time a property’s title or ownership is transferred, certain risks arise.
When you take out a title insurance policy on a property in North Carolina, you’re signing up for two things. One is a thorough investigation of the property’s title history. The second is insurance that protects you in the event of a title loss or discrepancy on the title’s history.
Not only is title insurance valuable, it’s highly affordable in North Carolina. You pay a one-time premium at closing based on the value of your property.
Do I Really Need Title Insurance?
While it’s optional, it is highly recommended. Depending on the age of the land or property you’re purchasing, it might have gone through several owners. Over the years, title issues can arise due to a number of different problems.
Some of these problems might be mistakes like clerical errors, miscommunication between owners, or inadequate surveys. Other problems may arise from negligence, fraud, or forgery.
If an issue with your title arises somewhere along the line, you’ll be prepared, protected, and insured if you have a proper policy.
What Kind of Issues Might Arise?
We’ll walk you through some hypotheticals. Say you purchase a home from a single woman. However, that woman bought the home with her former husband—whose name is still on the title. She sold it without a signature from that former husband, meaning he may come back and lay a claim to it after it’s been sold.
Or, perhaps a lien was taken out against the property. A company or organization may have a right to place a lien on the property in order to settle a former owner’s debt. A lien stays with a property until it is paid off or the property enters foreclosure.
What Kinds of Title Insurance are Available?
Generally speaking, there are two kinds of title insurance: lender’s coverage and owner’s coverage.
Any real estate transaction comes with a small amount of inherent risk, so the lender’s coverage protects the lender for the amount of money they’ve loaned to the buyer.
Plus, when you purchase a title insurance policy, you receive an extra layer of security. Say you have to hire a lawyer and go to court to defend your title: when you have a policy, it covers your legal costs up to the amount of the purchase price.
The lender’s coverage policy ends when the owner pays the loan off. The owner’s coverage policy lasts for the entire time they own the property, with additional protection after selling the property.
How Do I Get Title Insurance in North Carolina?
Title insurance differs from state-to-state, but North Carolina has some of the lowest title insurance rates available. To pick the insurer that’s right for you, we highly recommend meeting with your attorney to discuss it.
Once you sign a purchase agreement for the property, your escrow and closing agent will begin the process of helping you obtain title insurance.
What Makes Tryon Title the Best Option for Title Insurance in North Carolina?
At Tryon Title, we are provide our clients with exemplary customer service, as well as the fastest turnaround times with laser-sharp accuracy. We’re also local to North Carolina, so we understand this area and its unique real estate needs better than anyone.
Our dedicated team of North Carolina title insurance professionals has more than 50 years of combined title insurance experience, and our underwriters are known for delivering final policies in less than 24 hours. No matter how small, large, or complicated your task may be, please know that it is our top priority.
Please reach out to us today for an expedited, accurate, and streamlined title insurance experience.