Title insurance is an extremely important aspect of any real estate transaction, and yet many homeowners do not realize exactly what title insurance is or how it helps them. When you purchase a home you are purchasing the title or deed to the home. Title insurance is intended to make sure that you are getting this title free and clear. Without title insurance it is possible that the property you are purchasing might possibly be owned by someone else entirely. The ownership of a property may not always be clear; there may be liens against it or clerical errors may have led to ownership complications.
When you purchase title insurance the title insurance company will validate that the title is free and clear. However, if the title is not clear the title insurance company will also work to fix any errors and omissions so that you can be assured of the legitimacy of your purchase. Without title insurance you have no guarantee that there aren’t outstanding issues with the property’s title, and you may be in for an unpleasant surprise later on.
For more information about title insurance and how it relates to an escrow transaction contact Brighton Escrow.