Buying and owning a home is a significant milestone, often reflecting years of saving and planning. The journey begins by understanding the closing process. One essential step often overlooked by homebuyers is securing owner's title insurance. An owner’s title insurance policy acts as a safeguard, protecting you from unexpected financial burdens arising from a host of title related issues with your property.
Think of the title as your home's legal birth certificate. It establishes a transparent chain of ownership, tracing the ownership of the property back through previous owners. A clean title ensures you have complete ownership and eliminates title potential claims from others. Even the most thorough title search can miss hidden issues. Public records may contain errors, past transactions might be fraudulent, or there could be outstanding liens on the property that were not discoverable at the time you took possession. These issues can surface later, potentially jeopardizing your ownership or forcing you to spend significant money to defend your rights.
What Does Owner's Title Insurance Cover?
Owner's title insurance shields you from various issues, including:
Hidden heirs - An unknown heir to a previous owner could challenge your ownership.
Fraudulent deeds - A forged deed or one signed under duress could invalidate the title.
Errors in public records: Mistakes in property descriptions, ownership history, or liens can create ownership challenges.
Unpaid taxes or assessments - Unpaid property taxes or homeowner association dues could result in a lien on the property.
Easement disputes - An undisclosed easement granting someone else access rights to your property could come to light.
Encroachments - A neighbor's structure or landscaping may unintentionally encroach on your property.
Owner's title insurance offers numerous benefits. While the upfront cost might seem like an additional expense, the advantages far outweigh the potential risks. Here's how it safeguards your investment:
Financial Protection - If a title issue arises, the title insurance company will cover legal fees and court costs for defending your ownership.
Peace of Mind - Knowing you're protected from unexpected financial burdens allows you to enjoy homeownership with greater peace of mind.
Increased Resale Value - A clear title with owner's insurance makes your property more attractive to potential buyers, potentially increasing its value.
What Does Owner's Title Insurance NOT Cover?
While not mandatory, owner's title insurance comes highly recommended for any homebuyer. It's a small investment compared to the potential financial and emotional burden of dealing with a clouded title later. It's important to understand that owner's title insurance only covers some things.
Here are some exclusions to be aware of:
Existing zoning violations - If the property violates current zoning regulations, the insurance won't cover the costs to rectify the issue, if the local municipality enforces the zoning ordinance..
Environmental hazards - Contamination of the property by hazardous materials is never covered by title insurance.
Issues arising after closing - The policy only protects against issues that exist before the time of closing.
Avoid the Confusion and Get Help from the Pros!
Conestoga Title Insurance Co. has been a trusted name in title insurance since 1973. We've earned a rock-solid reputation for providing dependable title insurance to the real estate, legal, and financial communities. Our success is built on forging strong relationships through exceptional service, deep industry knowledge, and unwavering financial stability. Want to learn more about how title insurance protects your investment? Visit our website's FAQ section or call us directly at 800-732-3555. We're here to help!
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