What is Title Insurance?
If you are dealing with buying a home, you may have heard of the term “title insurance.” Among the other new terms you encounter as a first-time homeowner, title insurance is one you definitely don’t want to overlook. To start, let’s get a brief overview of what title insurance is. Title insurance is a form of protection in case anyone else has a claim against your home.
Usually, the next question is, “Who could have a claim against my home?” First of all, we are talking about incidents that would have occurred before you purchases the home. Of course, more often than not, these are incidents that may have occurred many years ago and completely forgotten about rather than intentionally malicious. When a house is bought or sold, sometimes these records are uncovered.
Some claims against a home come in the form of liens or levies due to unpaid debts. Other less common issues include forgeries, issues around inheritances, and filing errors. In any event, title insurance will protect you if any of these issues arise.
Do I Need Title Insurance?
For the vast majority of people buying a home – yes, you are required to have title insurance. Unless you are buying a property in cash, your lender will require you to have a title insurance policy. Furthermore, even if you are buying a property in cash, title insurance is very inexpensive and usually built into your closing costs.
If you work with us, this is a term you will hear as part of the process. Now you will have a better idea of what exactly title insurance covers! If you have any more questions about the home buying or selling process, call us today at 215-770-3122 or send us a message online.