Why Is Title Insurance So Important?

 Posted on January 15, 2024 in Alamo Title Company

Purchasing a home is likely the largest financial investment most people will ever make. With such a major commitment on the line, buyers want assurance that the property they are buying is truly theirs—free of any undisclosed liens, debts, or other defects in the title that could present future legal or financial issues. This is where title insurance comes in. A Texas real estate lawyer can help you with the process of making sure this is done properly.

Provides Protection for Your Investment

Title insurance provides protection for real estate owners and lenders against issues in the title that occurred prior to your ownership. This could include mistakes made in public records, forgery, fraud, undisclosed heirs, and other issues that could impact your rights and ownership in the property.

If a valid claim is made against your title, the title insurance company will typically pay the legal fees to defend your title, as well as pay valid claims so you do not incur losses. This protection, which is typically a one-time fee paid during closing, gives homebuyers invaluable peace of mind that their investment is covered.

Covers Undiscovered Defects

Even the most careful title search may not uncover all defects in the title. Title issues are sometimes well hidden, only to surface after the purchase. Title insurance protects your investment for as long as you or your heirs have an interest in the property, providing coverage for defects that existed prior to the policy date but were only recently discovered.

For example, what if a relative of a prior deceased owner comes forward claiming they are owed inheritance from the property sale? Or an outdated document suddenly surfaces showing a small portion of the land was deeded to another party? These and other issues can surface at any time. Title insurance covers your losses in legal situations like these.

Saves Legal Headaches and Hassles

If a title dispute arises, you may need to appear in court, produce legal documents, gather witnesses, and endure a long, expensive legal hassle that could cost you the home. Title insurance can save you from these headaches by providing professionals who defend the title for you in court so you can avoid draining emotional legal battles. The policy covers the legal costs so you can maintain ownership rights.

Contact a Fort Worth, TX Real Estate Lawyer

Title insurance is optional but can provide you with peace of mind. Working with a Fort Worth, TX real estate attorney can make sure you are going through the right steps. Call Gonzalez Law, PLLC at 817-349-7330 for a free consultation.