The Importance Of Title Insurance At Closing Time
When purchasing real estate in Georgia and elsewhere, title insurance can offer valuable protection if title issues arise at the time of closing or thereafter. Boling Rice LLC guides clients through the real property purchase process, including securing title insurance.
What Protections Does Title Insurance Offer?
Title insurance is an insurance policy that ensures the purchaser of the property is the sole owner and that the property is free from all defects, such as liens, encumbrances, or no right of access to the property. Coverage varies depending on the policy. Many title insurance companies offer standard and enhanced policies, with the enhanced policy covering additional harder-to-detect title issues. A client’s coverage needs will vary depending on the property’s history and type. Our office assists clients with both residential and commercial real estate title insurance policies.
The Risk Of Title Claims
Title claims pose considerable risk to property buyers. If a valid title dispute emerges, the buyer could lose the property. Even a baseless claim costs buyers time and money to clear the title.
Buyers may think that because the lender has title insurance the protections extend to the purchaser, but the lender’s policy only covers losses incurred by the lender. Another common misconception is that new homes automatically have a clear title because the home has not been purchased before. However, the land the home is built on has likely had many owners and a title claim could arise. Also, newly constructed homes have the added risk of mechanic’s liens by contractors or suppliers for nonpayment.