Every year about 20% of homebuyers fail to protect themselves by not getting owner’s title insurance. This leaves them exposed to serious financial risk – causing endless worry and regret.
If you’re thinking of buying a home, here’s what you need to know to protect yourself and your property rights, so you can rest assured once you’ve purchased your home:
Looking for Potential Threats
During the home-closing process, your title professional will help transition the home from the seller to you, the homebuyer, by examining public records. Generally, if a problem is discovered, the title professional works to resolve them before you purchase the home.
However, even after a title search is performed and you purchase your home, problems could arise that threaten your ownership rights. Examples include:
- Undiscovered tax liens
- Forged signatures in the chain of title
- Recording errors
- Undisclosed easements
- Title claims by missing heirs* or ex-spouses
Getting owner’s title insurance protects your property rights from threats like these. Here’s a real-life example of how it works:
A family in Missouri unknowingly purchased their home from a seller who had taken out a separate $419,000 loan on the property. But this fact was not discovered during the closing process, and the family’s lender paid the seller directly instead of paying off the existing loan.
Soon, the family faced foreclosure because someone else had claim against their title. Fortunately, the family had owner’s title insurance. So the title company paid the debt and the family kept their home – and peace of mind.
This story has a positive ending, but without owner’s title insurance, the family could have faced serious costs, and even eviction.
Support and Free Information
To buy your home with confidence, you need to work with a trusted title professional. Alliance Title has experts who will help you throughout the home closing process. They will also advise you on how to protect your property rights and avoid costly problems by getting owner’s title insurance. For more information, contact your local Alliance Title representative.
*Actual coverages may vary by state, company or locality. For exact terms, conditions, exclusions, and limitations, contact your local Alliance Title branch.
All publications of the American Land Title Association are copyrighted and are reference herein by specific permission from the American Land Title Association (ALTA). http://www.alta.org/