Why should consumers get title insurance?
For many Americans, the home buying process can seem extremely complicated, often because there's a lot of work to do and it's something they're probably only going to have to do once or twice in their whole lives. For this reason, there's usually a lot of confusion about what kinds of things are and are not necessary for them to do, and that can often include understanding the importance of having title insurance in place.
The fact of the matter is that when it comes to the title, there are actually a lot of things that could go wrong and scuttle a deal even after a contract has been accepted, according to a report from Home Closing 101. For instance, data shows that more than 1 in 3 title searches undertaken by professionals end up uncovering a problem with the documentation in question, and this can be for any number of reasons that come through no fault of the buyer's. Instead, an owner might have made even a minor misstep over the past several years or more, and that could become a major issue, and one which will need to be sorted out prior to the start of the closing process. Otherwise, those issues could become more of a problem for new owners.
This is why title insurance is important
For this reason, it's necessary that buyers do more to protect themselves in the event of any kind of issue that arises, the report said. Having title insurance in place will essentially serve to protect them from any number of problems that might arise; for instance, anything from an error or omission in title documentation could create issues down the road, but the problems can sometimes be more insidious, including fraud.
With this kind of coverage in place, a title company will be able to more readily support a buyer in trying to get any such issues sorted out in a timely fashion, the report said. However, it's important for buyers to also understand that the ways in which these policies can be purchased will vary from one place to another, and as a result it's vital that they ask mortgage professionals what they have to do to get the right kind of coverage for their unique situations.
The more buyers can do to prepare themselves for the rigors of the home buying process, the less likely they will be to run into problems that could stall their purchases altogether.
By: Equity National November 17, 2014 Closing