When you finally find that perfect home and your offer gets accepted, it feels like the hard part is over. But before you get too comfortable, there is one more important step that protects your legal right to the property. It is called a title search, and it makes sure no one else can come along later and claim they own your new place. Along with it comes something called title insurance, which keeps you covered if a problem pops up down the road. Below, our friends from Hayhurst Law PLLC discuss title searches and title insurance.
What Is A Title Search?
A title search is an in-depth look at the history of the property you are buying. The goal is to confirm that the seller really owns it and has the legal right to sell it to you. A title search will also look for anything that could cause ownership problems in the future.
Common issues that can show up include:
- Unpaid property taxes
- Liens from contractors who were never paid
- Old mortgages that were never properly cleared
- Disputes over property boundaries
- Claims from long-lost heirs who say they own the land
If any of these are found, they must be resolved before you can take ownership.
Why This Matters For Buyers
Imagine buying your dream home and then finding out six months later that someone else claims part of it. Or learning that the previous owner owed money that is now attached to your property. These issues can turn into expensive legal battles. A title search is your first line of defense against that kind of trouble.
What Is Title Insurance?
Even with a thorough title search, there is always a small chance that a hidden issue could surface later. That is where title insurance comes in. Title insurance is a policy that protects you from financial loss if someone challenges your ownership after the purchase.
There are two types:
- Lender’s title insurance protects the bank or mortgage company. This is almost always required if you are getting a loan.
- Owner’s title insurance protects you, the homeowner. This is optional in many places, but it is highly recommended.
Why You Should Consider Owner’s Title Insurance
If a claim is made against your property after you buy it, owner’s title insurance will cover legal fees and other costs to defend your ownership. Without it, you would be paying those expenses yourself. For most buyers, the one-time cost of the policy is well worth the peace of mind.
How A Real Estate Attorney Helps
A good real estate attorney can:
- Review the title search for red flags
- Make sure all issues are cleared before closing
- Explain the details of the title insurance policy
- Protect your legal rights if a problem arises later
Owning a home is about more than just having a roof over your head. It is about having the legal right to call it yours. A title search and title insurance work together to protect that right. It is better to be safe than sorry, especially when you are making one of the biggest investments of your life. A postnuptial agreement lawyer who is also a real estate attorney, can help homebuyers avoid some of the pitfalls that can interfere with an efficient and solid homebuying deal.