Imagine that you’re buying a home and the question of whether or not to purchase an owner’s title insurance policy is raised!
If you’re getting a mortgage to finance a portion of your transaction then your lender will require a title insurance policy to protect their investment.
And while you as the buyer have the option of yes or no when it comes to purchasing an owner’s policy, for a relatively small onetime premium why wouldn’t you protect your property rights as well?
Whichever title insurance company that you or your attorney choose will undoubtedly address and do their best to resolve every open issue prior to a closing taking place but, there are times when unknowable issues such as fraud unfortunately enter into the picture that are not discovered until post-closing.
For that reason, these are…
7 Reasons Why Every Homebuyer Needs Owner’s Title Insurance!
Buying a home is an exciting and emotional time for many people. To help you buy your home with more confidence, make sure you get owner’s title insurance. Here’s why it’s so important for you.
Protects Your Largest Investment
A home is probably the single largest investment you’ll make in your life. You insure everything else that’s valuable to you—your life, car, personal property, health, pets, jewelry, etc.—so why not your largest investment? For a one-time fee, owner’s title insurance protects your property rights for as long as you or your heirs* own the home.
Reduces Your Risk
If you’re buying a home, there are many hidden issues that may pop up after purchasing it. Getting an owner’s title insurance policy protects you from legal title discrepancies. Don’t think it will happen to you? Think again. Here are just some of the many situations that you’ll be protected from if you have owner’s title insurance.
Unforeseeable title claims, such as:
- Forgery: making a false document
– For example, the seller misrepresents the identity of the person selling the property.
- Fraud: deception to achieve unfair gain
– For example, someone steals your identity and either sells your house without your knowledge or consent, or takes out a second mortgage on the property and walks away with the money.
- Clerical error: inconsistent paperwork and historical records
– For example, an unforeseeable discrepancy in the property or fence line causes confusion in ownership rights.
Unexpected title claims, such as:
- Outstanding mortgages and judgments, or liens against the property because the seller didn’t pay required taxes
- Pending legal action against the property that could affect your ownership
- An unknown heir of a previous owner who is claiming ownership of the property
You Can’t Beat the Value
Owner’s title insurance is a one-time fee that’s very low relative to the value it provides. It typically costs around 0.5% of a home’s purchase price.
Covers Your Heirs*
As long as you or your heirs* own your home, owner’s title insurance protects your property rights.
Home insurance and warranties protect only the inside of the home. Getting owner’s title insurance ensures your family’s property rights stay protected.
8 in 10 Homebuyers Agree
Each year, more than 80% of America’s homebuyers choose to get owner’s title insurance.
Peace of Mind
If you’re buying a home, owner’s title insurance lets you rest assured, with the knowledge that you won’t be stuck with certain existing debts or legal problems once you’ve closed on your new home.
Michael Haltman is President of Hallmark Abstract Service in New York. He can be reached at mhaltman@HallmarkAbstractLLC.comGoogle+