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Why buying title insurance is usually a good decision

Buying a home is a major investment. Whether you are about to buy your first home or you are downsizing after your children moved out, it is coming to want to secure a good deal on a house. With the current real estate market intensely competitive in many areas, people often look for places other than the asking price to shave some expenses off the transaction.

Sellers are not keen on absorbing any costs associated with purchases when the market moves as quickly as it does right now. That means that people may look over the line items on their settlement statements and try to determine what, if any, they can get rid of. One of the few optional items is the buyers policy for title insurance. However, just because you can choose to opt out does not mean that you should.

Title defects don't happen often, but they are catastrophic in many cases

If you think about every person you know who owns a home, chances are good that none of them have had an issue with their title. That may lead you to think that because it is a rare occurrence, you do not need protection. However, title defects can impact any home sale at any time.

Even if the home you bought had a family as owners before you made your purchase, there could be a latent title defect that the previous owners did not know about. Maybe they purchased it from an estate. Perhaps the home was once part of a contentious divorce. There are numerous situations that can give rise to title claims that impair your ability to continue living in the space. Without title insurance, you could lose out on every cent you have invested in your house.

Title insurance helps you fight in court and helps you move on if you don't win

There are two primary benefits to purchasing a buyer's title insurance policy. You will likely already have to pay for a title policy that protects your lender if you have a mortgage. That policy does not offer any protection to you as the homeowner. Your policy will help you in two ways if a claim against title arises after you purchase your home.

First, the title policy will pay for an attorney to represent you in the legal debate about who owns the home. That can save you tens of thousands of dollars in the long run.

More importantly, title insurance protects you against Financial loss is related to a title defect. If someone else has a valid claim of ownership to your property, your title insurance policy will reimburse you for the down payment, the amount you paid in your mortgage, upgrades to the property and other significant Investments. Essentially, the title policy will let you recoup what you invested in your home, effectively allowing you to purchase a new one.

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