Do I Need Title Insurance?
Do You Need Title Insurance?
Title Insurance is one of those phrases you’ll hear a lot when you buy a home, especially if you are a first-time homeowner. Sometimes you can ignore the unfamiliar terms you hear, but in this case you should listen up: Title insurance is critical because it protects you financially during your loan closing.
If you’re not sure whether you need title insurance or where to buy it, an experienced real estate attorney at Matheson Law Firm, P.A. can help. Our team has decades of experience handling every aspect of a real estate transaction.
What Exactly is Title Insurance?
Title insurance’s purpose is to protect the insured from a potential financial loss on owned property. When it comes to home loan closing, there are two different policies: the required lender’s policy and the optional owner’s policy. With either one of these policies, there is a one-time upfront cost. This is different from other insurance policies that involve a monthly premium.
When you are looking into purchasing property, a title research company will check to ensure that the home you are interested in has a “clear title.” A “clear title” is ideal because it means the current owner not only owns the property completely, but there are no legal claims against the current property. Legal claims pose issues and can come from any form of lien or levy from a lender, creditor, or government taxes.
Why Do I Need Title Insurance?
Even with a “clear title,” you still might need the protection of title insurance. Undiscovered issues can arise, since there could be a mistake in the ownership history, oversight from the title research, or even a previously unknown heir. Title issues can present themselves in different forms, such as a pending lawsuit, legal judgment, or even fraud. Having title insurance can protect you from any previous owners’ and anything that was potentially overlooked.
When your home does not have a clear title, it can prevent you from being able to get a loan on the property. With most banks and loan lenders, you will be unable to get a loan if your home does not have a clear title on it. Occasionally, the previous homeowner did not pay back taxes or signed the deed incorrectly. All of these things can prevent you from getting a good loan on your home and prevent you from owning a home with a clear title on it.
Title insurance is a matter of wanting to be safe rather than sorry. If someone else tries to claim ownership of your home, you could not only lose the house but also the money that has been invested in it. Most mortgage lenders will insist on title insurance, since it protects their interest in the loan.
Who Pays for Title Insurance?
Title insurance varies by state and sometimes even by county when it comes time to hold a party responsible for purchasing title insurance. There are times when the buyers and sellers come to an agreement for portions of the title insurance to be paid by both or all in one. If the buyer ends up purchasing all of the title insurance, peace of mind knowing that title insurance offers one of the best insurance values around is often worth the cost of the policy.
Get Help Purchasing Title Insurance in Charlotte, NC
In North Carolina, it is illegal for loan lenders to require a specific company for your loans. With that in mind, not all title insurance policies or insurers are the same. Understanding your closing documents and loans is incredibly important to protecting your future as the owner of your property. Matheson Law Firm is dedicated to giving our clients options, not obstacles, when it comes to purchasing a home. We will help you find the best plan for your needs and are dedicated to ensuring a fair payment from the appropriate parties.
Call Matheson Law Firm (704) 439-1350 or contact us online for answers and advice regarding home title insurance in Charlotte, North Carolina.
