Buying a house is always a huge step in life, whether you are a first-time buyer or a seasoned one. It is without a doubt an exciting time, so it can be easy to get lost in the moment and forget to think about the future. Purchasing a house is also an expensive investment, so it makes sense that a lot of home owners attempt to find ways to lower their costs. An easy shortcut that many buyers make the mistake of taking is foregoing title insurance as many believe they do not need the coverage it provides. Unfortunately, this is a huge mistake that could end up costing the new homeowner more money or even their house in the future.
Is Title Insurance With Extended Coverage Necessary?
Title insurance and an extended coverage policy can protect the homeowner from a variety of issues that may arise from former owners such as previous liens and pre-existing violations of subdivision laws. As a homeowner you expect to enjoy certain benefits from your house without being affected by previous owners’ debts and mistakes. Title insurance helps to ensure that you get to enjoy your home as well as ensure that no one else can come and make a claim on it in the future.
One of the biggest protections offered by title insurance is the protection from the possibility of someone else trying to claim your home. It prevents someone from claiming they still have a stake in the property and can also help cover any costs that arise for the homeowner to dispute the claim. While it may seem far fetched that someone would swoop in and steal your home, it is more common than you think. It is not as simple as someone showing up on your doorstep claiming you’re living in their house. Instead, property law and the issues of ownership are very complex which can cause a lot of confusion and misinformation about deeds, ownership, liens etc. Plain ignorance can also lead to an issue that may result in a homeowner losing their home. For example, say the couple who owned your house before you had certain additions built without obtaining the proper permits. In some jurisdictions, if you purchased the home, and the jurisdiction discovered the unapproved renovations, the municipality could tear down your home or require you to reconstruct to code. The reality is that in this instance, title insurance would pay for your loss. Without it, you could be out your entire investment, still owing the amount of your loan.
While title insurance may drive up your costs more than you would like, it is worth it to ensure that you and your family do not end up losing your home due to confusion or ignorance. If you are purchasing a house, make sure to ask about title insurance and all the benefits it offers so that you can have some peace and mind about the future.
Need Legal Advice On Title Insurance?
The views and opinions expressed herein are those of the authors and do not necessarily reflect the official policy or position of anyone else. Any content provided herein is not intended to malign any religion, ethic group, club, organization, company, individual or anyone or anything.