Why Do I Need Title Insurance in a Real Estate Transaction?

Plano residential real estate lawyer for title insurance and title searches

Fort Worth Real Estate Attorney Helping Address Issues Related to Title Searches and Transfers

Real estate transactions can often be complicated. Buyers and sellers will need to negotiate a purchase price for a home, as well as other terms of their purchase agreement. A buyer will need to obtain financing, and a seller will often need to finalize the purchase of a new property or find other living arrangements after they leave their current home. Buyers and sellers will also need to address any issues uncovered during a home inspection or any other factors that may affect their transaction. In the midst of all this activity, the parties to a transaction will also need to make sure they will be able to transfer ownership of the property. If a title search uncovers any issues that would prevent the seller from transferring the title of the home to the buyer, this may jeopardize the parties' ability to complete the transaction. To prevent financial losses in these situations, it is important to obtain title insurance.

At Gonzalez Law, PLLC, we understand the issues that can affect a real estate transaction, and we are dedicated to helping our clients address their concerns effectively while protecting their rights and financial interests. As agents of Alamo Title Company, our lawyers are highly experienced in matters related to title transactions, and we can ensure that title searches are performed correctly during a transaction. We will help uncover and resolve any issues that may arise during this process while ensuring that you will be able to transfer ownership of property successfully.

Benefits of Title Insurance

During a real estate transaction, the title to the property must be "clear" before it can be transferred from the seller to the buyer. Issues that may prevent the transfer of a home's title are known as "encumbrances." They may include:

  • Liens against the property - If the owner of the property has unpaid debts, one or more creditors may have taken out a lien that will require debts to be repaid before ownership of the property can be transferred. These liens may be created following a judgment by a creditor against a debtor, or tax liens may address unpaid property taxes or income taxes owed to the IRS. Other types of liens may include claims against the property by a person who is owed support, such as an ex-spouse who receives child support or spousal support.
  • Ownership claims - In some cases, a person other than the seller may believe that they should be able to own the property. This may be an issue in situations where the seller inherited a home from a family member, but another person also believes that they have an inheritance claim on the property.
  • Errors in public records - Deeds and other documents that are recorded with local governments may have incorrect information, and this may sometimes prevent ownership of property from being transferred.
  • Other issues that may reduce the value of the property - A search of public records may find that easements on a property will affect a buyer's plans for construction or improvements, or they may otherwise affect the home's market value.

Title insurance can address these issues and ensure that a buyer or their mortgage lender will be protected from financial losses. Title insurance can be beneficial in cases where a title search may uncover issues that will prevent the parties from transferring ownership of the property. If there are unpaid property taxes or liens, title insurance will protect a buyer from being required to pay the amounts owed.

Contact Our Arlington Title Insurance Lawyers

Our firm can help you address any title issues that you may encounter during a residential real estate transaction. We will advise you on the best ways you can protect yourself, including through title insurance. To schedule a free consultation and discuss your concerns with our attorneys, contact our office by calling 817-349-7330. We assist with title transactions in Fort Worth, Forest Hill, Richland Hills, Plano, Arlington, White Settlement, Dallas, Tarrant County, Saginaw, and Haltom City.



1227 W. Magnolia Avenue, Suite 520
Fort Worth, TX 76104

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