Purchasing a new real estate property can be exciting. Whether you’re moving into a new home with your spouse or securing a larger space for your thriving business, owning property is a serious investment.
And with most investments, it’s essential that you protect it. For your new home or office, you might want to consider title insurance.
What is a title?
Every home comes with a “title” – essentially, this is what legally verifies who owns the property. When you’re buying a new home, you will need a “clear title,” meaning that the title is now solely in your name, and no one else can claim ownership of the property.
Many people might believe that having a clear title is enough security. However, that might not always be the case. This is where title insurance comes in, offering an extra layer of protection on your ownership.
What is title insurance?
You might be familiar with other types of insurance and believe title insurance functions in the same way. While auto insurance and title insurance do offer you protection in rough situations, the way they work isn’t all that similar.
For example, your auto insurance will cover the damages of an accident you are in after you have signed onto the policy. You cannot use your car insurance to receive compensation for an accident that occurred two years ago.
However, with title insurance, the opposite is true. Title insurance won’t protect you from a future title issue, but it will protect you from a previously unknown past title issue.
Think of it like this: You purchase title insurance on your new home. A few years down the line, you discover there are outstanding unpaid liens against the property from a previous owner. In this scenario, your title insurance may kick in to cover the costs.
How do I get title insurance?
While you’re looking to purchase a new home, you should reach out to an attorney with experience in title insurance and real estate. An attorney can help you understand the complicated nature of title insurance as well as defend you against any complications that might arise while clearing the title of your new home.
Buying a new home is an important milestone in your life. Make sure to take the process seriously and consider purchasing title insurance to bring you that peace of mind that your property is truly your own.