YOU ASK:

Is it really necessary to buy residential title insurance?

WE ANSWER:

In our opinion, yes.

Since this is an optional product, some people try to do away with this, saying that this is an unnecessary coverage.

Imagine these...

  • Your property is made subject to a lien because of unpaid real taxes or homeowner's association dues
  • Someone who claims to be an heir of the property but who was not mentioned or was omitted during the transaction is saying that the sale of the property is null and void
  • The purchase of the property was facilitated because the sellers forged the signature of one of the heirs
  • The value of the property has drastically decreased because the right of way to the property was denied
  • Because of an error in the recording of boundaries, you are forced to tear down a portion of your wall because it was encroaching upon the property of your neighbor

These are just some of the possibilities of the problems you might face as a homeowner. And there are many more possibilities.

This is where residential title insurance can help, as it ensures that these problems don't happen to you and that if ever they do, you can get monetary assistance for legal fees and indemnity in case you lose and the property is reverted back to the claimant.

Residential title insurance is quite useful in these situations. We are sure you will appreciate the fact that you had yourself insured.

Even if the seller signs a warranty deed, it is still useful to get a residential title insurance. The preliminary title search also serves to keep these possibilities from ever happening. The title searcher from the insurance company will already check the line of title to see that there are no problems with the title and that you rightfully and wholly own the property and that there are no hidden debts that you will have to pay.

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