What Is Title Insurance, Exactly?
You probably have a lot of questions if this is your first time buying a property. One query you may not have considered is who owned the property or condo unit before you. It may be an odd question to have, but past owners have the potential of influencing your future - unless you have purchased title insurance.
What is title insurance? Recently, a lot of people have wondered the same thing. The housing market has rebounded slightly, and people are looking to purchase homes while the prices are low. If you are one of these buyers, it is advised that you pick up title insurance.
Title insurance is used for protection against back taxes, undisclosed liens, legal judgments, forgeries and fraud that may have occurred prior to you taking control of a home or condo. Before you bought a property, it likely went through several other ownership changes, which could have been illegal or poorly handled. Unlike traditional home insurance policies, which protect homeowners against losses resulting from events that occur after the policy is issued, title insurance protects a buyer from events that have transpired prior to the issuing of the policy.