When you purchase a new home, it has usually gone through multiple ownership changes. In the same way that you hope previous owners have taken good care of the home and left everything in great shape, the title needs to be taken care of as well.
Problems with a title can arise from previous liens, unpaid taxes or any number of issues that arose from previous owners’ mistakes. But previous claims shouldn’t be your responsibility, right? Unfortunately, when the title transfers over to you it could become your obligation and your expense.
So, how do you protect yourself against previous claims that are not your fault?
There is only one way to protect yourself from this sort of loss: Title Insurance.
How is Title Insurance Different from Other Types of Insurance?
The title is the document that guarantees you legal ownership of your home. But since that title has been transferred from other owners, their sins can get saddled on your shoulders.
Title insurance is a special type of protection that works opposite of most other forms of insurance. Home insurance, for example, will protect your home against future damages against your structure (think hail, fire, hurricanes, etc.). But title insurance actually works in reverse by protecting you against previous claims so those old liens or mismanaged taxes won’t be your problem. Additionally, title insurance is a one-time fee that lasts as long as you or your family own the home.
Why is Title Insurance so Important?
Well, for one thing, no lender will offer loans without title insurance. Title insurance is the lender’s only protection against those previous claims that can show up in searches. But the main reason for title insurance is to protect you, the home buyer. Once the title transfers to your name, the entire title history is also yours as well. Title insurance is the only guarantee that you don’t pay for previous owners’ errors.
Now that you know how title insurance can protect you, it’s time to find a good title insurance company. Let our team at Dania Fernandez and Associates protect you from previous claims through our newest venture with Secure Title Services.
We offer legal assistance in all matters of condominium association law, homeowners and community association law, real estate litigations and transactions, residential and commercial closings, and insurance law.
We pride ourselves of our level of commitment to our clients. We love what we do, and we do it with utmost care and professionalism.
