Straight Study

March 30, 2017 at 8:56 am

Looking to the Past: The Role of Title Insurance

Couple Looking at a House They Just BoughtBuying a house is often one of the biggest expenses you make in a lifetime. It takes years — or even decades — worth of working and saving to own your own property. Then, here comes another huge expenditure: title insurance. Is there really a need to get it? The short answer is yes.

Here are two simple yet important reasons you should set aside a budget for one.

Protection from the Past

Title insurance is very important, especially if you are purchasing a home from a previous owner. Unlike other types of insurance that offer protection from things that are yet to happen, a title company in New Jersey will offer you protection from the past.

A title search is one of the processes that comes with title insurance. It includes screening the title and ownership history for any liabilities and issues that might surface and cause problems to the current owner.

More often than not, a title search may lead to common title problems such as unpaid taxes. Keep in mind that any unpaid taxes will pass on to you once you close a deal. Title insurance helps protect you from such scenarios and related losses.

Other common issues include improper vesting of names, mortgages, and deed problems. These issues, though seemingly minor, may cause legal problems in the future.

Protection from Fraud

Over the years, fraud strategies have become more rampant and even more creative. Fraudsters are able to sell properties they do not even own more easily than before. Title insurance provides you with some kind of fraud protection. Furthermore, it keeps your savings secure.

Though most people skip it because of the amount they have to pay out, title insurance can help keep your investments safe from the past as well as from fraud. It is, in fact, worth getting.