Without title insurance, new homeowners are vulnerable to legal issues that could ruin one of their most significant milestones. This one-time cost offers protection against last-minute matters on the day of closing and long-term security for the years ahead. Here are four crucial areas covered by title insurance.

1. Forgeries

First-time buyers are often easy prey for fraudulent sellers. You could buy a property that has falsified documents in a worst-case scenario. If the previous owner forges the title, you cannot legally claim ownership of the home. Title insurance protects your purchase if the seller is dishonest during the transaction.

2. Liens

Imagine you have happily bought a new home, only to find out later that the previous owner never paid their contractor bills. As the new titleholder, these costs fall on your shoulders. Now you’re stuck with expenses the seller purposefully kept hidden from you.

Lingering title issues are called liens, and they can quickly tarnish your purchase. Title insurance covers liens, including unpaid taxes, equity, and other unresolved bills so you avoid inheriting their mistakes.

3. Errors During Filing

Your closing should be stress-free and exciting. Filing errors at the last minute can throw a wrench into the entire transaction, resulting in expensive, lengthy legal disputes. Title insurance guarantees your documents are handled with care so you can rest easy knowing that your transaction is proceeding as planned.

4. Conflicting Wills & Unknown Heirs

There are times when the sale of a property and the previous owner’s will are in conflict. If that happens, an intense legal battle could occur. An unknown heir might argue they have the rightful claim to the home or its assets. Title insurance shields you from issues with their preexisting wills so you can safely claim ownership. 

Trusted Experience To Protect Your Rights

DaMore Law is your path to a clear title and successful closing. With over twenty years of real estate experience, our experts ensure you are thoroughly protected every step of the way. Contact us today to learn more about our buyer, seller, and lender services.