Title insurance protects the buyer from unforeseen defects in the title and provides peace of mind on this large purchase. When buying property, if you are planning on financing, your lender will require title insurance equal to at least the amount of the mortgage. You may increase this coverage to include your stake in equity in the property as well, if you desire. Even if you pay for your property with cash, it is a good idea to purchase title insurance to protect both your investment and resultant equity.
Clearing the title
Before a property sale is completed, the title company will review public records to identify irregularities and confirm the seller’s property ownership. However, even the most careful searches can miss errors that may have occurred in previous transfers of the title. These could include simple computer keystroke errors, liens, or actual fraud. Title insurance is a relatively inexpensive way to ensure that your investment is protected from these mistakes and no liability falls on you.
Ask the professionals
Thinking of buying or selling your home or office and need someone to help you through the process? The professionals at Bradford Real Estate are here to help. As a full-service brokerage, you’ll have access to our expertise as well as our network of qualified mortgage lenders, title companies, inspectors, appraisers, and contracting partners to ensure a smooth and enjoyable transaction from initial meeting to closing.