For those who want to purchase a property, title insurance provides valuable peace of mind. With title insurance, buyers can feel secure in knowing there is nothing standing in the way of them using their new purchase in the way they want. No one is going to lay claim to the property. No one is going to demand payment for unreconciled expenses left by the previous owner. And in the case that unexpected and unwelcome barriers arise, the title insurance ensures you are protected from them.
But you may wonder: are there signs that a purchase is at particular risk for title problems, or defects, as they are known? And if so, what signs should a potential buyer watch for that might indicate the need for title insurance? Let’s take a look.
3 Signs Title Insurance is Necessary
When Someone Wants to Sell a Property Quickly
When it seems that someone wants to offload property really fast, even suspiciously fast, smart investors will wonder why. On streetdirectory.com, experts warn that some buyers will let themselves get cornered into buying something too quickly, and that’s a dangerous place to be. But if you’re in a situation where you also want to purchase something quickly, title insurance can help you determine whether there are any title defects that would keep you from wanting the property.
When the Legal Status of the Property is Unclear
When the legal status of a property is in question, a title search will help determine whether there are skeletons hiding in public records such as wills, divorces, tax records liens and more. For the average person, conducting a search of these records would be intensely time consuming and not at all practical. But your trusted title insurance company will do the legwork for you, unearthing any title defects that could otherwise pose issues down the road.
When There Isn’t Much History of the Property Available to You
The history of a home or property can provide invaluable information to you that could impact how you are able to enjoy your investment. Even if you are only buying a plot of land, the history of that plot could come back to haunt you. When you have title insurance, the history of the property is researched thoroughly, to the point where you can relax in the knowledge that you own your property free and clear and nothing from its past will come back to haunt you.
Title Insurance Protects You and Your Investment
If you are taking out a loan for the purchase of your property, you will need title insurance. The good news is, as a consumer you are free to choose a title insurance company that is reputable—one which you know and trust. When your goal is to protect your investment in your property, not just any title insurance company will do. Choose carefully, and you can sleep well knowing you and your investment are protected.