The vital roles title insurance plays in home sales
A housing purchase is typically the largest transaction individuals undertake in their lifetimes, due to their substantial size and scale. As there a number of moving parts to every real estate sale, it is important both buyers and sellers take measures to prevent issues that could hamper the deal.
One of the best ways to mitigate potential problems in all stages of a home sale is by purchasing title insurance, as it provides numerous benefits through the following vital roles:
Helps buyers confidently navigate property exchange
Once a comprehensive title search has been performed, the person purchasing the property can rest assured that they are working with the actual owner. Title insurance allows all doubt to be removed from the exchange, enabling both parties to fully focus on the transaction at hand. It also facilitates sales, helping buyers and sellers to know their rights and protect their interests, as well as ensuring a quick and secure transfer of ownership.
Provides priceless peace of mind
Due to the size and scope of real estate sales, many often worry something will go wrong that will result in a failed deal or related legal troubles. However, those who obtain title insurance can benefit by knowing for certain that they're legally purchasing the house they intend to, and that they won't lose out on their investment because of unexpected clerical errors. At the same time, residential financing firms can rest easy knowing that they're protected against sustaining sizable losses for any deals in which title insurance plays a role. Lenders can be confident that any loans they provide will be repaid in full.
Offers reassurance of long-lasting coverage
Traditionally, title insurance policies last until the entirety of the loan is paid back, yet can be fully paid for with a one-time payment up front. This means that individuals who purchase title insurance can enjoy coverage for the life of their loan, but don't have to worry about having another monthly expense to account for. Rates can vary depending on a number of factors – like national interest rates, the property's sale price and type of policy – so the cost can be easy to cover for many, yet benefit them for years.
Unlocks intimate details of properties
Upon purchasing title insurance, individuals can profit from gaining a deep understanding of the house's history. Producing a comprehensive list of previous owners and completed construction projects can go a long way toward enticing a new buyer to purchase the property once the current inhabitant is ready to move on.
By: Equity National December 2, 2014 Title