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Benefits of Title Insurance: What Are They?

Monday, June 27, 2022

In 2021 the title insurance industry generated $26.2 billion in premiums.

Title insurance is a type of policy that protects a property owner in case a third party tries to claim ownership of said property. Having a title insurance policy will defend you against the suit.

Insurance is key in protecting a range of ways. If you're a constructor, property developer, or property owner, title insurance is one of the most important things you can invest in. Without it, you could end up in a complicated legal situation.

So what are the benefits of title insurance? Keep reading to find out.

1. Compliance With RERA

REFA (real estate finance associates) has made it mandatory for developers, landowners, constructors, etc., to purchase title insurance. It helps protect the real estate business by implementing uniformity and transparency. It also helps with credit facility and financing.

A property insurance policy acts as collateral to strengthen the property's value. This makes it easier for you to get credit as the owner. It also makes performing real estate transactions safer.

2. Covers Litigation Costs

Fighting legal claims can be very costly. Title insurance helps with this as it can bear the cost of legal expenses such as:

  • Lawyer fees
  • Documentation expenses
  • Settlement costs

Things like unpaid property taxes, unclear land titles, and spousal claims after purchase can all have a huge financial impact. Having a title insurance policy in place will help cover all of these.

3. Handles Disputed Ownership Claims

Title insurance can make a huge difference when an ownership claim arises. As the homeowner, you'll have a much easier time validating your ownership.

Your policy will act as a financial shield against any past ownership claims. It will also help in the event of fraud or unclear land titles.

4. Saves Time and Cost

As title insurance bears many of the costs associated with claim disputes, it will save you a lot of money. It can also help resolve things much more quickly. Some providers will opt for out-of-court settlements to avoid property claims.

With title insurance, you will be protected for years, and it's far more cost-efficient than handling property disputes without one.

5. Safety Shield in Residential Projects

As a developer, having title insurance can protect until the time of construction. This is ideal as past property frauds might try to claim before this. House financing companies will be more confident if you have a title insurance policy, which will help with collateral supporting credit.

Title insurance massively reduces the trust deficit in the real estate industry by safeguarding investment mechanisms. Your property will also get a boost in terms of the investment profile value.

Your Title Insurance Policy

Heartland Abstract is a title insurance provider based in Pottstown, PA. If you're a developer or property owner, you'll want to ensure you have the right coverage to protect you and your property. To find out more about how we can help you, contact us today!

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