What Is Title Insurance?

If you’re in the process of buying a home, you may have heard that you need to get title insurance. This is an important part of the process, and it’s never a good idea to go without it. Generally, you will get your title insurance once a real estate attorney has put together all of the pieces that go into a real estate closing.

So what is this type of insurance, and why do you need it? Records of a real estate transaction, whether the property is sold, bought, or financed, get filed into archives that are open to the public. In addition, there are other records that are archived, such as a levy or lien that is put on a property. So how do you access these records, and what are you looking for? When you get title insurance for the real estate you are buying, it is a title company that goes into these archives to find out all about your property. They look for a range of issues with the ownership of the property and can remedy some of the problems found.

The title insurance company will first look into the records of your property to find out about its status of ownership. Once this has been done, the insurance underwriter can figure out whether the title can be insured. Not every potential problem can be found by even the best title professionals, but in general, the records are there for them to dive into, and they can find out about a number of potential problems with the ownership of the property. There are some errors on titles that are difficult to find out about, and this is where title insurance comes in. It can give you protection against a number of problems that could be found down the road.

Benefits of Title Insurance

When you buy a real estate property, it’s vital that the title should be good and that it is coming from the correct owner. When you get title insurance, you can be assured that you are getting the clear title you need to be the new owner of the property. When you get a mortgage loan, the lender will virtually always require that you have title insurance for the property in case of a problem. This insurance is only paid for one time, but the coverage lasts throughout your ownership of the property.

Call Clearview Title

If there’s a property you’re interested in buying, don’t go forward without title insurance. Call us at Clearview Title to get the coverage you need for a safer investment in your new property.