Categories: Title Insurance, Disadvantages, History
Title insurance is a type of insurance that protects a buyer from any losses they may incur due to title defects. It is important to buy title insurance when purchasing a property as it can help protect you from any legal issues that may arise due to a title defect. Here are the steps to take when buying title insurance.
1. Research the title insurance company. Before you purchase title insurance, it is important to research the title insurance company you are considering buying from. Look for reviews from other customers and make sure that the company is reputable and trustworthy.
2. Get a title search. Before you purchase title insurance, you should get a title search. This will help you identify any potential title defects that may be present.
3. Purchase title insurance. Once you have identified any potential title defects, you can purchase title insurance. The cost of title insurance will depend on the value of the property.
4. Close the sale. Once you have purchased title insurance, you can close the sale. Make sure to keep the title insurance policy in a safe place.
It is important to be aware of the potential disadvantages of title insurance. These include:
• Title insurance does not cover all title defects.
• Title insurance does not cover any liens or encumbrances that may be present.
• Title insurance does not cover any future claims that may be made against the property.
There is a long history of title insurance in the United States. Title insurance first began in the late 19th century in Pennsylvania. The purpose of title insurance was to protect buyers from any losses they may incur due to title defects. Since then, title insurance has become an important part of the home buying process.
In conclusion, title insurance is an important part of the home buying process. It can help protect you from any potential losses due to title defects. Make sure to research the title insurance company you are considering buying from and get a title search before you purchase title insurance. Lastly, be aware of the potential disadvantages of title insurance.