Title insurance is a critical component of property transactions whether you live in New Jersey or elsewhere in the US. The lender usually requires title insurance if you take out a mortgage for your purchase. Unfortunately, many people don’t understand what title insurance does until they need it. Our title agency in New Jersey wants you to understand the six ways title insurance helps those who buy it.
1. Low-Cost Peace of Mind
Do you find yourself wondering what is title insurance? Title insurance is purchased for a tiny percentage of the selling price of the property. Having title insurance coverage can save you thousands of dollars in court costs and attorney’s fees if there is an issue with the title. Title insurance covers costs to resolve title issues for as long as you own the property.
2. Property Rights Protection
There are several tips that you should take advantage of when it comes to shopping for title insurance. Title insurance is a great way to protect your property rights. The integrity of the property’s title naturally provides peace of mind for yourself, others involved in the transaction, and even the subsequent owners, should you decide to sell it in the future.
Title companies research the property to ensure the title is free and clear for the next owner. If problems with the title surface down the road, title insurance will help you resolve them.
3. One-Time Payment
No one looks forward to their regular car insurance payments. And unfortunately, you will be paying on those for most of your life with few exceptions. Thankfully, title insurance is different.
It’s a small, one-time fee you pay at the time of purchase. You are protected for as long as you own the property without spending additional money to keep the coverage in force.
4. Mistake Insulation
One of the biggest mistakes to avoid as a first time homeowner is to overlook title insurance. When you insure a property title, you insulate yourself from any mistakes made on the title for as long as you own the property. Title insurance protects your title from past, present, and even future errors that could affect property ownership.
5. Resale Ability
When it comes time to sell your property, the lender may require title insurance for the new buyer. The insurance policy is issued once the title company has researched the property and determined there are no known issues.
If you had declined title insurance when you originally bought the property, you would be on the hook for the expense necessary to resolve the issue before the title company will bind coverage for the new owner. This means that you, the seller, will incur unexpected delays and costs necessary to fix the title so the property can be legally transferred to the new owner. Get the insurance!
6. Protects Your Purchase From Unknown Title Problems
If most people knew what the title insurance process was doing for them, they would probably be falling over themselves to pay for the coverage. Think about a deed that was improperly recorded 40 years ago – would you have known about that? Probably not. Could it affect your ownership of the property? Maybe! It’s also incredibly important to understand the difference between a deed vs title.
Title insurance addresses even the hidden issues. Often these issues are discovered and resolved as the title company underwrites the property. If something is found that affects the title tomorrow, or many years later, the title insurance will help you resolve the issues.
When you see everything title insurance can do for you, it becomes an easy decision to include in your property purchase! Don’t let yourself get caught without title insurance now or decades later. A good policy will address title issues that arise from the day you purchase the property to the day you sell it. There are several benefits of collaborating with an experienced title insurance agency. Get in touch with Cortes & Hay in New Jersey today to discover the peace of mind title insurance can bring to your property purchasing experience.