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It’s a Must: Understanding the True Value of Title Insurance
It’s super important—purchasing a home. In fact, it ranks as the single largest investment for most working families. But do you know what’s even more important? Protecting that investment with title insurance.
As a real estate professional, you know that protecting a real estate investment typically requires a variety of insurance coverages. These may include mortgage insurance, a homeowners policy, and title insurance, among others. While the first two are usually well understood, the true value of title insurance tends to be unclear.
Real estate attorneys and industry professionals generally urge property buyers to include these policies at the closing. It’s not unusual for first-time homebuyers to simply take the advice of experienced professionals and buy the coverage without having a deep knowledge of the inherent value. However, there are some on a tight budget that think not incurring the modest cost amounts to “a penny saved.” These homeowners fail to understand why this coverage has become standard practice. If your clients are considering sidestepping what appears to be an unnecessary expense, here are some important reasons title insurance could prove invaluable.
Title Research is a Vital Process
The pre-purchase title process involves significant research to identify and eliminate risks for the buyer. A thorough investigation generally includes a search of existing public land records and an examination of the available information. This helps everyday people make informed decisions about the history of a property and its chain of ownership. Real estate title research is a vital process that routinely highlights common problems, such as the following.
- Liens against a property
- Outstanding mortgages or judgments
- Unpaid back taxes
- Easements for utilities or future roads
Because title research tends to be thorough and appears conclusive, buyers too often gain a false sense of security and bypass title insurance. Even the most diligent vetting of public information cannot account for is the unknown. Regardless of how thoroughly a title has been put under the microscope, undisclosed information can pose a financial danger.
Common Title Hazards Hidden from Research Process
Title insurance has become a routine aspect of the closing process precisely because property owners encounter unforeseen problems. Think about it for a moment. If title research were an absolute defense against land disputes and civil litigation, the insurance sector would not have these products. The fact that title insurance remains a prevalent protection stems from the fact it is necessary. These are title hazards that typically cannot be identified by even the most thorough land records research.
- A forged signature on the deed
- Invalid notary acknowledgments
- An unidentified heir comes forward to claim ownership of a property
- A faulty power of attorney was used to execute a property transfer
- Errors exist in the recorded public documents
- A squatter has the standing to make an adverse possession claim
Should these or other unknown factors present themselves after the transaction has been completed, the property owner generally suffers a substantial financial burden. Land and title disputes are considered a niche area of the law. Attorneys who practice real estate dispute litigation often charge a premium. That means property owners either put their title insurance to work or pay out of pocket. And believe it or not, even new homes need title insurance.
Contact the Best Maryland Title Company for Insurance Coverage
When your clients fail to secure title insurance coverage, the stress and anxiety of costly legal fees can be emotionally taxing. That’s why the true value title insurance coverage equals financial and emotional security.
When working with a client who is purchasing a new home, commercial property, tract of land, or don’t have a policy in place, consider working with the best title company in Maryland. Velocity Title utilizes next-generation technology to deliver the best title services possible. For a seamless experience that provides lasting peace of mind, contact Velocity Title today.
How Velocity Title Moves You Forward
Velocity Title supports the real estate industry with a comprehensive line of title services that add value to each and every transaction. At Velocity Title, Our Personal Support Makes You Look Good Every Time! With a focus on the best CUSTOMER EXPERIENCE, Velocity Title incorporates leading title TECHNOLOGY and EXPERTISE into every transaction—enabling the final step in the home buying and investing process to be EASY, EFFICIENT and INFORMATIVE. For the perfect settlement experience every time, click here or contact us today!