One of the terms you will hear often when you are buying a property is title and title insurance. A property title is the proof of your ownership. When the ownership of a property is transferred, a record of transfer of title is recorded in the public records. You can buy a title insurance from a Parkland title insurance company to protect yourself against any threats to the property title.
What is title insurance?
Title insurance is a type of indemnity insurance. It protects you against any financial loss that arises out of defects in the title of the property Title insurance will protect you against mistakes or faults in title search, forgery, undisclosed mortgage, impersonation or missing property deeds. These mistakes can later threaten your own ownership.
Why do you need it?
Protecting your investment: A real estate property transaction involves a substantial investment. A threat to the property title will jeopardize your ownership and investment. With protection from Parkland title insurance company, you will be able to recover any loss you may suffer due to a threat against the title.
Protecting the lender’s interest: Sometimes it is the lender who insists that you buy the insurance. Any danger to your ownership also threatens the lender’s investment. Through the title insurance, the lender can ensure that his investment is also protected.
Legal protection: If another party takes you to court to stake a claim, the title insurance shows that you bought the property with a clear record. It will also cover your legal costs.
Title search: A Parkland title insurance company also offers title search services. Although you can access title history through the public records, sometimes there are omissions. An insurance company has the resources to run a thorough title search to find out if there are any liens against the property.