When you purchase a home or other real estate, you will receive a document usually referred to as the deed. The deed shows that the seller of the property has transferred their legal ownership, or the title, of the home to you.
Title insurance offers protection in the event one someone suing and saying that they had a claim against the home prior to your purchase. These claims often arise as the result of the previous owner’s failure to pay taxes or from contractors who were not paid for work done on the home prior to its sale.
Lenders generally require buyers to purchase a lender’s title insurance policy that protects the amount they lend. This policy does not protect your investment. To protect your financial investment, you may want to purchase what is known as an owner’s title policy.
What is an Owner’s Title Policy?
An owner’s title policy protects you in the event of problems or defects with the title that may arise when purchasing a home. Without an owner’s title policy, you will not be covered in the event of a loss that occurs as the result of claim. When you purchase a policy, the title company will defend the title in court should anyone challenge it.
Many people argue that an owner’s title policy is no longer a necessity because of how easy it is to search for information on the Internet and because the occurrence of claims is low. However, it’s worthwhile to invest in an owner’s title policy just in case you run into problems.
Purchasing a home is likely one of the largest purchases you’ll ever make, and protecting your investment should always be a primary concern. To learn more about obtaining an owner’s title policy, contact Shore Title today by calling 609-263-7472.