Title insurance is really important for any property transaction. Before offering to give a title insurance, a title service will conduct a title search to find out if there are any limitations or issues with the title. This title search is performed in order to reduce the risks of providing insurance.
There are many title problems which can be a nightmare for new homeowners. Problems such as wills, trusts and deeds which contain incorrect vesting and false names , late mortgages , judgments , easements, tax liens , or even flawed notary acknowledgments are mostly found in the title search and can be corrected before the transaction on the property . When such issues are not corrected they might be noted as exceptions to the policy’s coverage. And then you need to come to a decision whether the property or home is still something you wish to buy as you have known some issues with the title.
Examples of issues which will arise after you buy a property are dishonest acts by previous property owners – such as fabricated documents that transfer without title to the property, forged mortgages, or even forged satisfactions, impersonation of the actual property owners by fraudulent individuals.
When you know if there is limitation on the ownership of the property or any liens against the title, you will be curious why you cannot just handle those problems prior to buying the property. That is why you will need title insurance after you know about all the issues with the title.
One strategy to make sure that you actually hold property ownership is to have title insurance. Without it, the unexpected cost of defending a title claim could be very high. If you want to protect your property against title claims, you must consider hiring a real estate attorney qualified in title service.