There are a lot of things to think about when buying a house. One of the most important but often overlooked is title insurance, which can save you unforeseen future costs and problems. Here are six reasons you need title insurance when purchasing a house.
1. Mistakes in Records
One of the main reasons you need title insurance is mistakes in the records. These mistakes can include incorrect name spellings, incorrect ownership information, and even missing heirs. If there are any mistakes in the documents, it could cause problems when trying to transfer the title to your name.
2. Fraudulent Claims and Documents
Another reason you need title insurance is to protect yourself from fraudulent claims. If someone tries to file a claim on the property, title insurance will help to protect your investment.
It would be best to have title insurance to protect yourself from fraudulent documents. If someone tries to file a document with records that is not legitimate, it can create problems when you try to transfer the title. Fraudulent claims include false liens, forged signatures, and even impersonation.
3. Default on a Previous Loan
If the previous owner of the house defaulted on a loan, it could cause problems for you when trying to transfer the title. This is because it can leave a lien on the property that you would be responsible for paying. Title Insurance Florida providers will help you with problems like this.
4. Undisclosed Heirs
If there are any heirs that the previous owner of the house failed to disclose, it can create problems when you try to transfer the title. Those heirs could potentially claim the property and block the sale. Moreover, they could also demand money from you to release their claim. Title insurance will help to protect you from lawsuits like this.
5. Unrecorded or Undisclosed Deeds
Similarly, if there are any deeds that the previous owner of the house fails to disclose, it can create problems when trying to transfer the title. This is because those deeds could give someone else a claim on your property that prevents you from selling it. Such deeds are called unrecorded or undisclosed deeds and can be very difficult to deal with.
6. Liens for Unpaid Taxes or Hazardous Materials
If the house’s previous owner had unpaid property taxes or left behind hazardous materials, it can cause problems when transferring the title. This is because whoever buys the property will be responsible for paying those taxes and removing those hazardous materials. Title insurance will help to protect you from problems like this.
As you can see, there are many reasons why you need title insurance when buying a house. It is an essential safeguard for your investment and can help protect you from various problems. Make sure to talk to your real estate agent about getting title insurance for your next purchase.