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Title Insurance Is a Must
Protecting Your Property Purchase
Home closings are known for their endless signatures and sometimes confusing legal documents, but in my professional opinion, title insurance is one of those documents that you need to make sure is in your stack. The title search will remove any doubt about current liens against the property, including back taxes and HOA dues. If the title policy cannot be issued cleanly without possible claims against the current owners, the buyer’s lender will not issue the loan to close the sale.
Public record searches done on your own are not enough, because there are many things that cannot be found in public records. According to attorney Deanie Gregory at Greater Nashville Title & Closing Co., here are just a few of the possible troubles you could encounter after buying a home:
• False impersonation of the true landowner
• Undisclosed heirs
• Improperly recorded legal documents
• State inheritance and gift tax liens
• Errors in tax records
• Rights of divorced parties
• Utility easements
• Lack of jurisdiction or competency of persons in judicial proceedings
Title insurance is legal protection if any of these issues should occur so that no one can come and take your property from you. It will take care of you in the case of a lawsuit, and it will reimburse you based on any losses incurred, depending on your amount of coverage.
It’s important to note that title insurance is just as important with a new construction purchase as it is with an existing home purchase. According to Deanie Gregory, from the minute construction starts on your home, each person in the building process will have lien rights attached to your home, and you need the protection that title insurance offers.
So, whom can you trust in this decision? The seller/builder is sometimes reluctant to mention title insurance because they are traditionally the ones who pay for it. But, that can be negotiated by you and your agent into the closing. Trust your agent to protect you, and trust your mortgage lender when it comes to selecting a reputable title firm. According to law professor Ronald Mann at Bankrate.com, "The lender's interest dovetails with yours in getting these things done well." The lender is guaranteeing a large amount of money based on the assurance that the property you're using as collateral is really yours. You can also research the underwriter and title company or attorney online to see what past customers are saying about their services.
Contact me so I can help you through the entire home-buying process. I want you to have a great experience and I want you to be legally protected.
If you would like more information about Greater Nashville Title & Closing Co., contact:
Deanie L. Gregory, Attorney-at-Law
Greater Nashville Title & Closing Co.
200 Madison Street
Madison, TN 37115