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Why is title insurance useful when buying a home?

On Behalf of | Apr 22, 2021 | Real Estate

Buying a home in Florida and elsewhere is exciting but complicated. Even if a person believes that he or she has gone through all the necessary steps to close on a house, unexpected issues could still arise. In some cases, problems with the title of the home could result in disputes that delay or even completely derail a real estate transaction, which is why having title insurance could be useful.

As the name suggests, title insurance helps insure the title of the home and the buyer against any serious problems that could arise. It is not unheard of for individuals to try to claim ownership of a home even after another person has attempted to purchase it, especially if the buyer is purchasing from an estate after the previous owner’s passing. It is also not unusual for outstanding liens or fines to apply to the title that could end up the obligation of the new owner to address.

Though many real estate purchases close without issues relating to the title, problems can arise, which is why choosing to obtain title insurance is often better than not. Some other things that this insurance could help protect against include:

  • Forged or fraudulent title documents
  • Inaccurate records that could put the sale in jeopardy
  • Previously unidentified easements that could affect property usage or value

Many homebuyers, especially those buying for the first time, do not fully understand how valuable title insurance can be. Still, it is a smart move to gain more information on this type of insurance and how it could protect the buyers’ interests during a real estate purchase. Discussing this topic and other title-related matters with experienced Florida attorneys may be useful.