“What is title insurance, and do I really need it?” This is a common question we hear from our clients! Title insurance protects homeowners and lenders from property loss or damages due to defects, liens, or encumbrances in the title to a property. If you’re using financing to purchase a home, you MUST have a title insurance policy in place as it’s required by all lenders. However, if you’re paying cash for a home you’re able to decide whether or not to buy a title insurance policy.
Here are 20 reasons why it might be a good idea:
- Title insurance will protect you against a loss on your home or land due to a title defect.
- A deed or mortgage in the chain of title may be a forgery.
- Claims consistently arise due to marital status or validity of divorces.
- A deed or mortgage may have been made by an incompetent or underaged person.
- A deed or mortgage made under an expired power of attorney may be void.
- A deed or mortgage may have been made by someone with the same name as the owner.
- A child born after the execution of a will may have an interest in the property.
- Title transferred by an heir may be subject to a federal estate tax lien.
- An heir or other person presumed dead may appear and recover the property or an interest.
- A judgement regarding the title may be voidable because of some defect in the proceeding.
- By insuring the title you can eliminate delays when passing the title along to someone else.
- Title insurance reimburses you for the amount of your covered loss.
- Title insurance helps speed negotiations when you’re ready to sell or obtain a loan.
- A deed or mortgage may be voidable if signed while the grantor was in bankruptcy.
- Claims have risen dramatically over the last 30 years.
- There may be a defect in the recording of a document upon which your title is dependent.
- Title insurance covers attorney fees and court costs.
- Many lawyers protect themselves as well as their clients by procuring title insurance.
- A deed or mortgage may have been procured by fraud or duress.
- A title policy is paid in full by the first premium for as long as you own the property.
If you’re interested in learning more about title insurance or purchasing a policy, contact Nevada Title at 702.251.5000.