Why Title Insurance Matters for Homebuyers

When buying property, most people think about inspections, appraisals, and loan approvals—but one of the most important safeguards is often overlooked: title insurance.

Title insurance protects both homeowners and lenders from problems tied to the property’s ownership history. If a dispute arises, the insurance company covers certain legal costs or damages, depending on the policy.

Who pays for it?
Title insurance can be purchased by the buyer or the seller, and it can cover the homeowner directly or the lender who financed the property. Either way, it ensures that the property’s title is clean and that the seller has the legal right to transfer ownership.

Here’s why you should consider it:

• Peace of mind when buying
  If you’re not working with an attorney, title insurance is the next best protection. It ensures you’re buying from the rightful owner and shields you if disputes arise later.

• Early problem detection
  Before issuing a policy, the title company researches the property to uncover potential issues such as liens or ownership disputes. Many problems can be resolved before closing.

• Lower claim risk, lower costs
  If the title is clear, your insurance costs will be relatively low compared to the financial risks of not having coverage.

• Resolution before closing
  A thorough search can catch issues like unpaid taxes, outstanding loans, or incorrect deed details. Addressing these before closing prevents future headaches.

• Fraud protection
  Forgery and fraudulent documents still occur in real estate. Title insurance protects you from unknowingly buying into a fraudulent transaction.

While not always mandatory, title insurance provides crucial protection that can save you time, stress, and money down the road.