Buying a home will be one of the largest purchases that most people make in their lives. If you are one of them, then you wouldn’t want to face any issues regarding the ownership of the title or house after completing the transaction. This is where title insurance companies can be great help to you.
Title insurance does an excellent job of protecting mortgage lenders and homeowners against problems or defects with the title during the property ownership transfer. If a dispute happens regarding the title after or during a sale, then the title insurance company will need to pay for legal damages based on the insurance policy.
How Does Title Insurance Work?
Homeowners must understand that obtaining title insurance is a two-step process. The title insurance company will initially conduct a title search to ensure that the house or property that you are planning to buy has a clear title.
Confirming that it does have a clear title will guarantee that the individual who is selling it truly owns the property and they have the right to sell it. If an issue or defect comes up, then the title insurance company will let you know about it.
Once the title company confirms that the property has a clear title or when they identify issues with the title, then they will start the underwriting process. The underwriting process involves addressing issues and potential risks and then provide a quote.
It is important to note that insurance companies might not offer a policy if there are any defects or issues with the title. Get in touch with us to learn more about how title insurance really works.