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Buying a New Home: Do You Need to Have Title Insurance?

Thursday, June 18, 2020

You've found it: your dream home. Your mortgage is prepared, you've got a new paint color for the bathroom in mind, and now the only thing left on your mind is whether or not you need title insurance.

Keep reading to learn if title insurance is necessary, or if you can skip the cost and save some money.

What Is Home Title Insurance?

Home title insurance is one of the most important parts of real estate, and yet it's not well understood. When you purchase a house, you don't just exchange money for keys. 

Title insurance ensures that you have legal standing to the property. It means that the old owner can't come back one day and claim that the house is theirs.

Title insurance also provides protection in case something does go the court. You won't have to spend a great amount of money on protecting the home you just bought. Your insurance will pay for that instead. 

So Do You Really Need Title Insurance?

Most real estate transactions will require title insurance, and it's a good idea to have it. Although there may be some cases where you know the owners well and you feel like you don't need to add an additional cost, it's in your best interest to purchase title insurance. You never know what old family or friend grievances might arise that could cost you hundreds of thousands in court fees. 

Title insurance doesn't just protect you from the old owner either. Let's say that you just bought the perfect house on the beach. If the next-door neighbor suddenly claims that the house is built on their land or that they have a right to mine for gas, coal, or minerals (you name it), your title insurance protects you from all of the fees that would be associated with that fight. 

Do You Need Title Insurance Even If the Title Search Came up Clean?

Your title company will do a title search to find out information like:

  • Who can actually sell the house
  • The property lines
  • Any unsettled building codes or code violations

The title search is not the same as title insurance. Even if the search came up without finding any problems, you should still purchase title insurance. Old documents with property claims pop up every day and you would hate for one of them to have a claim to your new home. 

Get Title Insurance Today

Evidently, title insurance is something that you absolutely need to have when purchasing a home. 

Heartland offers title insurance with no hidden fees and because it's your money, we make sure that it's your choice. We don't generate fees for real estate agencies because we don't want you to spend a penny more than you need to.

We'll help you build your own real estate team so that you can have the best home buying experience possible. Get in touch with us today to learn how we can help you.

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