A title insurance policy may be the sole reason you’ll escape a world of legal home ownership headaches. Purchasing a home normally goes with few major hitches, but not always. You pay tens of thousands for your dream home, but later discover someone else legally owns your home. Sounds like a nightmare? You bet, it is.
Fortunately In North Carolina, you’re required to get this protection. We at Tryon Title want you to understand exactly why and how this insurance protects your precious investment. We’ll start with the basics.
Life doesn’t always run smoothly.
The truth: when you’re doing anything with legal documentation, there are inevitable errors on occasion. Home and other property purchases involve passing ownership from seller to buyer in the form of a property title. Purchases usually complete with no hassle. There are even document investigations– called “title searches”– to ensure no issues get in your way.
Not every property buyer is as lucky. There are many situations where legal ownership is blurred. A previous owner may have failed to pay their taxes. A contractor may not have been paid for work they’d done on the property. Maybe there’s an error in the deed. In some cases, title documentation may even be forged.
In these situations, the seller (knowingly or not) has a joint ownership with another party. A buyer takes on these problems the moment they receive the title. When someone decides to sue, the legal fees are all yours now.
What is title insurance doing for you?
When you insure your title, you are protecting your legal rights to your property purchase. In the case that a problem were to arise, you receive the key safeguards:
- Your property is financially covered for the full cost of purchase.
- You are offered protection even if concerns are found after your title search.
- Any legal help and payment of claims will be provided by your title insurance company.
- You are covered for your entire lifetime-of-ownership.
There are a few critical components to making a productive policy. You must have a comprehensive title search and solid underwriting. The title searcher will investigate all sorts of documents to confirm that your title has clean ownership and is legitimate. The underwriters will try to examine these documents for any impact on your property, and try to treat any defects. They’ll finally list any exceptions that remain to potentially affect you in the future. The end result is a defense between you and disaster, so you can make use of your purchase without worry.
Secure your land with this essential first line-of-defense.
There are far too many reasons for you to have title insurance. You’ve made a massive stride just by reading up on this challenging topic. You’ve learned to insure your title to avoid any lurking legal claims to your home. Additionally, you now know that your coverage protects you in full for as long as you own the property.
Regardless of whether your state requires it, you’ll be thanking yourself when a legal snafu means your title company foots the hefty bill. Be a blessing to your future self by guarding the only place you can truly call your “home.” If you need any more guidance, just set up a chat with us here at Tryon Title anytime.