Can I Still Buy Title Insurance After a Closing?

title insurance after closing

Let’s say a distant relative included you in their will, leading to a cash windfall for you. You meet with your accountant, and they have several strategies to help you keep and grow your inheritance. One of those strategies is to purchase a rental unit. You’re excited to pay cash for such a large purchase. And because there is no lender, your sale flies through the process, and the next thing you know, you have the keys to your new rental in your hand.

It’s an exciting moment. Upon getting everything settled, a good friend who used to be a realtor in another state also calls. You tell your friend everything that has gone on since you last spoke. Of course, you share the news of your new rental property and how fast the sale happened.

Your friend suddenly has a concerned tone in their voice and tells you that they’ve seen people who missed critical steps in their property purchase because they paid with cash, and here is why. The standard mortgage-backed purchase includes checks and balances to ensure all the Is are dotted and the Ts are crossed. Along with that, they also make sure you have home insurance and title insurance in place before giving you a single penny.

You realize that you did take care of home insurance but not the title insurance. After more conversation, your friend tells you a story about one of his clients who did almost the same thing. Only he never went back to purchase the title insurance.

The story continues with your friend’s client ending up in a lengthy court battle with someone claiming ownership of the property ten years after your friend’s client purchased it. They learn they will never buy a property without title insurance again! Fortunately, they were able to resolve the issue. But not without racking up $10,000 in legal fees. On top of the legal fees, there is also the stress that comes with these types of experiences.

Your friend suggests you call your title company and get title insurance as fast as possible. You call them on Monday, and they happily start the process.

Yes! Luckily, You Can Purchase Title Insurance After You Close

If you need title insurance after closing on your home, you can absolutely add it after the sale. In fact, we highly recommend it, and here’s why:

Title Search

The title company performs an in-depth title search to determine if any problems with the title need to be addressed. The search also allows them to verify that the title is free and clear, either as-is or after issues are cleared up.

Future Owners

Title insurance can certainly help future buyers and owners. Knowing your title is free, clear, and insured against any issues that could crop up later will help you sell the home if you intend to sell the property at some point.

Peace of Mind

Skipping such a critical step as purchasing title insurance can wreak havoc on your future if issues with the title land you in court. Title insurance is inexpensive to purchase coverage that will be in force as long as you own the property. And who knows, you may never need it. But knowing you’re covered can provide comfort in such a significant transaction.

At Cortes & Hay, we have learned a few things in our 50+ years of providing impeccable title services across the entire state of New Jersey. If you want to add a title insurance policy to your property, get in touch with us, and we will help you get the process started.