When you purchase a new home, you want to make sure that you maintain your ownership rights to that property. Every year, many people purchase homes and protect their investments with title insurance.
According to the National Association of REALTORS®, in 2020, people in the U.S. purchased 5.64 million existing homes, and many of these buyers safeguarded their purchase with title insurance. Generally speaking, your title insurance policy protects you from any issues with ownership of your new home that could emerge after you finalize the purchase.
Common title problems
Some of the most common title problems include things like unknown liens, illegal deeds, missing heirs and errors in public records. Other title issues can involve forgeries, undiscovered encumbrances, boundary surveys and disputes and false impersonation of the prior owner.
The title search process
After you buy title insurance, a title professional will conduct a search into public records to identify any issues that could prevent you from fully owning and enjoying the purchase you bought. The title search process should uncover any issues with judgments and liens as well as information about taxes and levies, information about mortgages, sewer and street assessments and a variety of other problems that could impact an otherwise straightforward transaction.
A complete title search can give you peace of mind while providing detailed information about the property you intend to buy. And by having title insurance, you can reduce the risk associated with a problem that arises relating to ownership once you finalize the purchase.