Common Title Issues and How Title Insurance Protects You

title insurance issues

When purchasing or selling a property, it’s important to consider all the potential risks that come with it. From unknown liens and encumbrances to errors in public records and forgery – these issues can cause unexpected financial liabilities and legal problems. Fortunately, title insurance offers comprehensive protection against these and other risks. This article will explore the key benefits and advantages of title insurance for property owners.

Most reputable title insurance policies offer these core benefits in the coverage they provide:

  • Protection Against Hidden Liens and Other Encumbrances
  • Correction of Errors in Public Property Records
  • Reparations from Forgery and Fraud

While these benefits may address the lion’s share of how a title policy can protect you, not all policies are the same. Here are the issues that our title insurance agency in New Jersey believes you need to be aware of and why they are essential to your next property purchase.

  • Protection Against Unknown Liens and Encumbrances

One of the most significant risks of owning property is the possibility of unknown liens and encumbrances, such as outstanding mortgage loans or tax debts. Title insurance covers these issues, ensuring that the property owner won’t have to pay off any outstanding debts or liens on the property that is not their responsibility. This protection is particularly important for buyers, who may be unaware of these liabilities and face significant financial consequences.

  • Correction of Errors in Public Records:

Errors in public records, such as inaccurate property descriptions or incorrect ownership information, can cause problems for property owners. Title insurance covers these inaccuracies, securing property ownership and protecting against any challenges arising from these errors.

  • Prevention of Forgery and Fraud:

Forgery and fraud are serious threats in real estate and can result in the transfer of ownership or other essential rights without proper authorization. Title insurance may cover financial losses that result from a forged deed or fraudulent transfer of ownership. This protects the owner and their rights to the property.

  • Resolution of Boundary Disputes

Boundary disputes can lead to costly legal battles and seriously impact a property’s value. Title insurance covers the cost of resolving these disputes ensuring appropriate reparations to damaged parties. It safeguards the owner’s financial interests and ensures that the property’s value is not adversely affected.

  • Finding Missing Heirs or Wills:

Sometimes, the transfer of ownership of a property can be complicated by undisclosed heirs or missing wills. Title insurance can provide relief to new property owners by identifying and helping to resolve these issues to ensure the transfer of ownership is completed smoothly and without any unwelcome surprises.

  • Correction of Zoning Issues

Zoning issues can cause problems during property transfers, such as potential fines or restrictions on the use of the property. Title insurance covers the cost of correcting these violations, safeguarding the owner’s investment, and ensuring that the property complies with local laws and regulations.

  • Peace of Mind

One of the most significant advantages of title insurance is peace of mind. Knowing that your investment is protected against potential issues and risks, you can feel confident in your purchase and enjoy your property without worrying about potential problems.

  • Financial Security

Title insurance offers financial security for property owners, preventing any unexpected costs or losses associated with title issues. This can save property owners thousands of dollars in legal fees and other expenses, making title insurance a wise investment for anyone looking to protect their property ownership.

  • Claims Process

In the unlikely event that a title issue does arise, title insurance offers an easy and efficient claims process. Property owners can work with the title company that insured their title to expeditiously resolve any issues so they can get back to enjoying their investment without having to worry about lengthy or complicated legal battles and unanticipated court costs.

Title insurance offers peace of mind and financial security to property owners. From protection against unknown liens and encumbrances to correction of errors in public records, title insurance provides a wide range of benefits that ensure property ownership remains secure. With the property title insurance policy, property owners can have confidence in their investment and know their rights are protected. Whether you are a first-time home buyer or a seasoned property investor, title insurance is a wise investment that can save you time, money, and stress in the long run.

Consider Our Experience

Cortes and Hay have been solving property title issues in the great state of New Jersey for over 50 years. So, if you want to purchase real estate, consider investing in title insurance to protect yourself against the risks and uncertainties that come with property ownership. If you’re buying property, turn to the experts at Cortes and Hay to help correctly insure the title of your next property.  Get in touch with us today!