Do I Need Title Insurance, Even If I Am Paying Cash?
Title insurance is an insurance policy that is required by the lender when taking a mortgage. The insurance policy is meant to benefit the lender in several ways. The lender requires the insurance policy to gain knowledge and understanding about the property in question. Information gathered include the ownership of the property and whether any charge has been placed before by any other lender. The information is meant to protect the lender in the event that there may be any issues with the property. Therefore, it is imperative to take a title insurance policy when taking a mortgage using a loan rather than cash. However, when paying for the mortgage using cash, you can decide to leave out the policy or take it since it is optional and the beneficiary is yourself rather than a third party.
Title insurance has two primary policies that include the loan policy and the Owner’s policy. The loan policy title insurance is taken by those who are required to take the insurance policy since they use a loan to acquire their mortgage. However, Owner’s policy is limited to the one who wishes to have the policy to acquire relevant information about the property. Therefore, it is important to have the title insurance policy even when paying cash, since the benefits it has to offer should never be ignored.
The professionals at Heights Title Services will conduct a title search on the concerned property. The search conducted helps to uncover any issues that may underlie the property. Any vague issues are thoroughly investigated and the remedies to such problems solved with the help of insurance professionals. However, technical issues that may need more time and resources are directed towards you as the owner of the property, to help you understand the issues and act if necessary. The title insurance policy will help uncover issues such as previous liens placed on the property, forgeries, encumbrances on the property such as sewer lines that restrict the number of ways you can use the property and errors that may occur on public records.
Protection from Future Issues
Taking an Owner’s insurance policy provides the owner with the information that pertains to the property in question. It provides information after a title search is conducted, declaring the state of the property pertaining to issues such as liens, charges and encumbrances. The information gathered at the time of taking the title insurance could help the owner in future should any issues arise. Therefore, it is critical for an owner to take the title insurance policy despite the fact that it is placed as optional to the owner of the property. Although the owner may assume that physical ownership of the property defines real ownership, any issues that may have not been resolved but still existed on the property, may haunt the owner and in extreme cases lead to losing the property for good. Having a title insurance policy shows that a thorough such was conducted and previous issues did not exist. Therefore, issues raised after the acquisition of the title insurance serves to show that the issue was fake rather than an actual occurrence. It could therefore serve as evidence in a court of law, to prove that the owner acquired the property without any issues.