It is important to obtain title insurance when you are looking to purchase a property. Title insurance protects the buyer of real estate from losses due to problems with the title, or the deed to the property. These problems can arise because of transactions in the past that were not completed properly.
For example, a husband and wife own a home but he never signed off during the sale. In such cases, the wife can come back later and claim that he has half from home. Title insurance protects you in cases like this.
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Title insurance protects the buyer from liens against the house that they may not be aware of. For example, the IRS can place a lien on someone's house if they are behind on their taxes. This city can put a lien if the water bill or other service bills unpaid.
Even contractors who have done work at home can put a lien against. When you obtain title insurance, title insurance companies will check to see if there are any liens against the house and they will reveal their findings before you buy.
If you then find out that there are liens that did not find a title company, the title company will be liable to pay a fee to resolve the issue.
If you get a mortgage to purchase property, your lender will insist you get title insurance. The title insurance protects the lender and the buyer. You will not be able to obtain a mortgage to purchase real estate without buying a title insurance policy for the property.