Why You Should Get Title Insurance for Your Home Purchase

Title Insurance

As an attorney, it’s concerning when a homebuyer has been told that title insurance isn’t necessary for their home purchase, as a home is usually a person’s largest investment. For a minimal, one-time fee (usually 0.5% of the purchase price) a buyer has protection for the term of their homeownership.

The following are three reasons why you should never opt out of title insurance:

1. Title issues can arise later

Potential defects often arise even after a thorough search of the public records by an abstractor and subsequent review by an attorney.  Title insurance protects you against hidden defects such as:

  • Forgeries (buyer, seller, notary, witness)
  • Mentally incompetent seller or buyer
  • Undisclosed spouse with a community property interest
  • Lack of a power of attorney (POA) or falsified POA
  • Selling without all heirs’ permission
  • Title recorded but not properly indexed
  • Undisclosed but recorded tax lien, judgment or child support lien, prior mortgage, boundary or setback agreements
  • Discovery of later will after probate of first will
  • Erroneous legal descriptions
  • Later discovery of an unknown heir of former owner
  • Undisclosed pending legal action against the property

2. Your heirs are protected

Having title insurance ensures that your property rights are protected as long as you or your heirs own the home. Property can, therefore, be passed down with protection.

3. Peace of mind

A home is probably the single largest investment you will make in your lifetime. Owner’s title insurance prevents potential future legal problems.  You insure your car, health, valuables, et cetera, so why would you not protect your family’s property rights?

If you want to learn more about title insurance and how it can protect you and your family, call TitlePlus today at (225) 709-3500.