Hello there, American Dream Realty of South Jersey NJ fans, and welcome to our latest blog! From time to time, we like to give our family and friends some quick lessons on the real estate process, as it can be intimidating to navigate if you’re not used to it. So, for this edition of our Crash Course series, please join us as we cover title insurance!
Title insurance is often one of those things that many buyers forget about, and we don’t blame them. Unlike auto and health insurance, which has a place in your everyday life, title insurance really only comes into play when looking to buy a home, right after you sign the purchasing agreement. Don’t stress too much about finding on your own, as your American Dream Realty agent will help with that. While it may seem distant at first, title insurance is extremely important to have for your property, and here’s why.
By having a title insurance policy, you essentially have an insurance policy against anyone who would like to make a claim to what you purchased, be it a previous owner or a lien holder. Let’s say, for example, the previous owner had some medical bills that they couldn’t pay, so a lien was placed against the house. If the house was sold, and the lien holder was not notified nor paid from the proceeds by the previous owner, then they would argue that they have a claim to the portion of the house you now earn, even though you didn’t rack up those bills! Title insurance protects you against that, by doing the legwork to discover potential liens on the home, and to give you coverage in the event that one slipped through the cracks.
Now, if you are looking to take out a mortgage for your new home, lenders require you to have a policy to protect their interest. However, it may be wise to you to take out an owner’s policy as well, since an ounce of prevention is worth a pound of cure. After the policy is issued, you have been guaranteed clean title, so should any problems arise, they are not ones that you need to tend to. No matter the case, you American Dream Realty of South Jersey agent will help to find out what is best for you!
We hope you took something from this Crash Course segment, and keep your eyes open for the next edition! If you would like to learn more about the home buying process, or would like to get started on your very own quest for a perfect home, stop by our office—we would love to have a chat!
Until next time!