A Knoxville home is one of the largest investments you will ever make.
Most buyers do not hesitate to get a home inspection or to carry homeowner’s insurance to protect their investment.
But, what about protecting your ownership interest?
Strangely, many buyers do not understand the importance of owner’s title insurance. Here are 3 reasons why you need owner’s title insurance when you buy a home.
Errors In Public Records
In a perfect world, public records would be flawless. Unfortunately, we’re all human and mistakes happen.
When a clerical or filling error occurs, the resulting consequences can be costly and significant to fix if you don’t have owner’s title insurance.
Examples of errors in public records can include the following errors:
- Incorrect information in deeds or deeds of trust
- Improper legal description
- Unreleased mortgages
- Improperly filed legal documents
Unknown Liens
Every property has its history. Unfortunately, a previous owner’s history can come back to haunt you, even after you’ve closed on a property.
If you’ve purchase a foreclosure or if the seller you purchased the home from didn’t pay their bills, it’s still possible that a lien can be filed against the former owner, even after closing. The lien may not be against you, but it can attach to the property if it should have been paid when the previous owner sold the property.
That’s a pretty scary thought, which is why owner’s title insurance is so important. You never know what kind of history a home comes with. It’s best to protect yourself from the unknown.
Illegal Deeds
Even when a title examination is completed and the chain of title is thoroughly examined, there can still be deeper issues the a title search doesn’t reveal.
If a prior deed was conveyed by a minor, a person of unsound mind, an illegal immigrant, or someone lied about his or her marital status, these issues can call into question the enforceability of prior deeds and in turn call into question your ownership in the property.
While these circumstances are beyond any buyer’s control, it’s important that you protect yourself as a buyer.
Bottom Line – Protect Your Investment
Owner’s title insurance is a simple way to protect your ownership interest. It’s a simple one time fee that protects you and your heirs so long as you own the home. That’s a very small price to pay for the protection and peace of mind.
Are you in the process of buying or selling a home in the Knoxville area? Title Group would love to assist you in any way possible. You can reach us at 865-392-5801 or via email at orders@titlegroupoftn.com.
Title Group of Tennessee is a full service Knoxville title company. We specialize in Knox, Sevier, Loudon, Blount, Jefferson, and surrounding counties. Title Group of Tennessee is ALTA Best Practices Certified since October 2015.