Are title clouds over your property affecting the way you perceive its value? Is that cloud preventing you from listing your premium property or selling it? If you’re trying to sell a property, it is important to have a clean title. Title insurance is a critical factor in home ownership. Any homeowner will need to consider the possibility of having to fight a legal dispute over the property itself or a claim of ownership. This insurance protects you and your home if such a claim arises, and you have no other option but to seek out justice through litigation.
What is Title Insurance?
Settling on a property has never been so risky. Thanks to online records, title clouds are abundant. Since no one can predict the future, aren’t you better off taking precautions?
Title insurance is a policy issued by an insurance company that protects the holder against claims from third-party claimants to the subject property. When you purchase this insurance, you are buying an intangible but essential piece of paper that provides assurance that any third-party claim covered for any loss or will be resolved in your favor. This document will simplify your rights to transfer or sell your mortgaged property to anyone.
Why Title Cloud Could Happen
When you own a home, there is a good chance that you’ll be selling it at some point. Whether it’s because of a foreclosure or illness, title clouds often appear on the horizon. At first, they’re merely a concern — an inconvenience that you must address before you move forward with closing on the property.
However, as the days go by and more time passes without a resolution, those concerns may grow larger and more difficult to deal with. Title clouds are serious, and they can jeopardize the sale of any property. Some causes of clouds on titles include:
A lien creates a cloud upon your title that requires payment or satisfaction so that you can convey clear title. Liens can vary from judgments, mechanic’s liens for work done to the property, mortgages to renovation and repair money you owe your contractor. Tax liens can also create a problem regarding your property when you are about to sell it, refinance it or leave it to your loved ones upon your death.
An illegal or forged deed may occur if the signature of the previous owner was forged or the prior transferor or grantor of your property transferred the property to you illegally without the actual owner’s knowledge. Your deed may also be illegal if you acquired your property from a minor or a married person without the knowledge of their spouse.
A foreclosure that didn’t follow the proper procedure can cause a title defect in the future. Foreclosure errors can last for a long time and can cause property disputes even if you are purchasing a property that was foreclosed a long time ago.
Besides the above issues, other causes of title clouds may include forgery, property inheritance disputes, survey and boundary problems, deed errors, among others.
How Title Insurance Can Help
When in possession of any property, you need to have peace of mind and assurance that you will be safe from any past or current title issues that will cause you a problem in the future. Therefore, it is necessary to request a licensed title professional to help you conduct a title search to find out any issues that might affect your property ownership in the future.
The professional will guide you to resolve liens and remove clouds just in case they find any. However, some errors may be too hidden to be discovered by title companies. This is where insurance on your title comes in. This policy may help you by covering:
- Inheritance disputes
- Deed errors
- Illegal deed transfer
- Forgery or fraud
- Borderline and survey disputes.
It is important to understand that title insurance is a one time premium that will cover you for any title problems from the past that affects your title now. You are assured that you own the property, free and clear of any liens or other encumbrances as of the date that you take title. It does not protect you from liens that may result after you own the property from anything that you may cause, such as unpaid taxes or liens after you own the property.
Get More Information on Title Insurance from An Expert
Insurance on your title protects you against problems that could cost thousands of dollars in legal fees and lost time. At Gary I. Handin, P.A, and our Florida Home Title Company, we will provide you all the information you need on title acquisition. With our experience and established reputation, we believe we will serve you right. Contact us today for help on your title.