Why You Should Purchase Title Insurance

There are only a few things that can compare to the joy a family experiences when they have just purchased/built a house or bought the title to a property. However, many people believe that after paying everyone that needs to be paid, the transaction is over and done with. This is not always the case.

After a sales contract is accepted and before receiving the title of a plot of land, title professionals will look through public records in order to see if there are any problems regarding the property in question. These problems can range from a previous owner with a debt to the contractor or a failure to pay taxes. These problems are quite common in the real estate industry, with more than 1/3 of title reviews revealing a problem. If a title professional comes across these problems, they will fix these problems for you before you have to pay.

This process, however, is not perfect and sometimes a problem can turn up after payment or when a new occupant has already moved in. For example, a long-lost heir turns up to claim the property after you've moved in. When this happens, the heir can actually have you vacate the premises due to him/her being the legal owner. Not only are you out of a home, you also lose the money you spent purchasing the property.

If you purchased title Insurance, however, the situation completely changes. For more information on title insurance, contact your local title company.