What are the benefits of having title insurance? If you’re thinking about buying a house, it’s essential to understand title insurance and how it benefits you.
Title insurance is not one of those things that homebuyers pay attention to until they need it. Most people sign on the dotted line without giving title insurance a second thought which could be a big mistake. You could have an unintended legal judgment against the title to the property.
Here are four reasons why having title insurance is so important.
4 Benefits of Having Title Insurance
1. Protection from Liens
The owner’s policy will protect you from liens placed on the home before your purchase. Liens can be placed on a title because of unpaid debts, such as due taxes, outstanding bills from contractors who have worked on the property, or child support owed by a previous owner. If you purchase a home with a lien and do not have title insurance, you may be responsible for that debt.
2. Protection Against Fraud
Fraud is another type of lien that can be placed on your home without your knowledge.
Sometimes, someone can forge documents and sell your home without your knowledge. The new owner could force you out of your property if this happens. An owner’s title insurance policy will cover these issues if they arise.
3. Protects You From Mistakes in Public Records
Public records often contain errors, but those mistakes can spell big trouble for a homeowner if they reveal a problem with the property’s title. The public records may indicate that someone else has a claim to your land or that there are liens against it.
Title insurance will cover any costs associated with correcting these mistakes. It will also cover any expenses related to giving up your claim to the property or selling it at a reduced price due to the liens.
4. Covers Legal Fees and Expenses Incurred Defending Your Title on Your Behalf
A significant benefit of title insurance is that it covers legal fees and expenses incurred defending your title on your behalf should a covered claim occurs. When faced with this type of situation, you shouldn’t have to worry about coming up with the money for legal fees out of pocket.
The policy provides peace of mind by offering this protection—you’ll know that you don’t have to deal with any issues alone.
The Bottom Line
Considering the above benefits of having title insurance, is this policy worth it? Absolutely! When you think through the potential costs of solving disputes, title defects, and frauds you may be unaware of, a title insurance policy is worth having.
If you are looking for a title company in Knoxville to handle your real estate transactions, don’t trust just any company. Choose a company that you can rely on and that you can trust. Even the slightest mistake during this process could prove costly, so you must choose carefully.
Title Group of Tennessee is an experienced Knoxville title company offering clients efficient and personalized services. Call us today at 865-392-5801 or click here, and we’ll soon have you closing with ease and peace of mind.
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