Title Insurance is a common term that you will hear when buying or selling a property. It can seem like a term difficult to truly grasp concept of. That is why here at home key title in Westborough we want to provide you with a clear idea of what title insurance is and why it is important.
Understand the Concept of Title Insurance
A lot of new concepts may arise when it comes to buying a property. You may get away with not thoroughly comprehending all the subjects and terms at hand because the professionals take care of most of these terms and procedures for you. Since most people only buy a home once or twice in their lifetime they do not worry too much about all the details and measures taken to complete the transaction. However, it is important to at least understand the important steps that need to be taken before a home is purchased. One of these essential steps in home buying is acquiring Title insurance. To understand the concept of title insurance lets try looking at it through a different perspective. Let’s say you know someone that is selling a phone and you really like it, you pay him for it without asking questions or investigating if it is his or why he is selling it. He gives you the phone, but if it didn’t really belong to him, you may have payed for it, and have it in your possession, but it does not legally belong to you. The phone may be blocked and reported stolen and it will be of no use to you. It might even get you in trouble, not to mention you just threw your money away and will not be getting it back.
Why You Need Title Insurance
The same thing can happen with a property,someone may have it and they might be selling it but it may not legally belong to them. When you pay for and purchase this property you might encounter a lot of problems and even get into a tight situation for buying something that was not sold by the rightful owner and so even if you pay for it, it does not belong to you. Now the great difference is that with a phone we are talking about maybe a few hundred dollars, with a property we may be talking about hundreds of thousands and even millions of dollars. This is why most states require that you have title insurance before purchasing a property.
What a Title Search Is
It is in your best interest to have a professional, investigate, dig up and find any discrepancy or defect in the ownership of the property, before you buy it. This is what a title search is, a through investigation of the legal possession of the property. You can always try doing a title search on your own as we discuss on our previous post. However, if you are truly serious about investing and buying the property, it is most recommended that a profession do this because they have all the necessary experience and resources to facilitate and complete the title search in an utmost efficient manner. A professional will help you through the whole process and may even be able to provide help in correcting any defect that the title may have.
What Title Insurance Covers
Title Insurance also protects you by covering the full amount you pay for the property. This means that if when the title search was done there were no defects found but later on after you purchase it some discrepancy comes up, which is very unlikely that will happen if the title search was done by a professional, then you do not have to suffer the consequences. The title insurance covers you for the amount you paid for the property, this means if you pay 500,000 dollars for your house and a defect in the title comes up you are covered for the full 500,000 that you paid.
Why Title Insurance Exists
The real reason that title insurance exists is to protect you from any fraud known and unknown, as well as any defect in the paperwork of the property that may arise. Basically title insurance helps you leave one huge worry behind by making sure you do not pay for any unknown mistake that may legally be bound to your property. It is always in your best interest to have title insurance and to have a professional team help you through the entire process.
Title Insurance in Westborough
Here at Thompson Law Group, PC & Home Key Title Closing, Inc we are a team of fully qualified professionals that are ready to help you in all your title insurance needs. We are the best when it come to title insurance in Westborough. Call us today at (508) 475-5502. We are happy to answer all your questions and provide you with the best service and the peace of mind you deserve.