Title insurance is insurance that protects the person buying a piece of property from any losses that result from a dispute in property ownership. This one-time payment assures that the buyer of the property has good, clear and marketable title and that the title is free from defects or clouds on title.
It is important to buy title insurance to protect you against a problem with the title to property that may arise due to something that is not in the public record and that the attorney certifying title has no way of knowing about. For example, take the case of forgery of a warranty deed sometime before the person selling the property to you received the property. The attorney certifying title may not know or have any way of discovering the forgery. The deeds are properly recorded and title looks clear and marketable on the surface. However, in the future, the person whose name was forged to the deed may properly claim title to the property even though you have closed and you are currently living on the property. This is the type of hidden defect that title insurance protects against.
Some lenders require title insurance in order to lend you the money. They want to ensure that they have clear, marketable title to the land until you finish paying for it or if they do have a problem with title to the property, that they are insured against the loss. As you can see, title insurance may be one of the most important coverages you can buy – it may protect you from the losses associated with losing your home to a stranger years after you have closed and taken possession of the property.
If you would like to talk to an experienced and caring Raleigh real estate title insurance attorney, please contact us.