As a real estate investor, chances are you know a thing or two about title insurance in North Carolina. After all, with the large amount of money you just spent on your newest property, you want to do everything you can to protect yourself financially.
That’s why we highly recommend getting a separate title insurance policy for every single property you invest in. But it goes further than that; you can’t just use any old title insurance agency. In order to truly protect your investment, you have to make sure that your title insurance policy is clean, accurate, and effective.
The difference between a clean title insurance policy and a subpar one could spell disaster for your real estate investment.
There are Dozens of Reasons to Take Out a Title Insurance Policy
With real estate, you never know what’s going to happen. Even if you purchase a new construction home, there’s no way of knowing who used to own the land it’s built on without doing a title search.
There are dozens and dozens of potential issues that could arise with your property’s title! A few of the most common ones include:
- Mistakes: incorrect information on the title in relation to previous owners, the address, and when or where it was sold.
- Forgery: this is even harder to detect. A property owner may have been impersonated or had their signature forged on an important document.
- Secret Spouses: During divorces, many couples won’t cooperate with each other when it comes to real estate. As a result, oftentimes one spouse will sell a property without telling the other—even if their name is on the title.
- Zoning Violations: your commercial property may be improperly located.
Although title insurance may seem pricey up front, it is almost always worth the investment. Plus, the majority of the premium you pay up front goes towards the title search—and determining if the seller actually owns the property they’re trying to sell.
And There’s More Than One Type of Policy to Consider
You may have heard of the difference between a lender’s policy and an owner’s policy, but there are two other kinds of title insurance policies you should be aware of. We’re talking about standard coverage vs. extended coverage title insurance policy.
As you might have guessed, the standard coverage policy doesn’t offer quite as many protections as the extended coverage. It’s also less expensive. Typically, a standard coverage policy covers the following kinds of title issues:
- Chain of title fraud
- Property defects detected by a title search
- Defective recordings
An extended coverage policy covers everything we just listed, as well as some additional issues that may arise with your property title. With extended coverage, you’ll also be protected from any issues that weren’t previously recorded or that were uncovered through inspection or verbal inquiries.
Rely on a Professional Title Insurance Agency to Protect Your Investment
No matter what kind of real estate property you’re investing in, protecting yourself and your investment should always be a top priority. If you’re looking for a clean and effective title insurance policy for your upcoming investment, please don’t hesitate to contact Tryon Title today.