We are all familiar with insurance and what it can do to help us out. Whether it be your medical insurance, delivery insurance, or car insurance, it is an added security during emergency cases and serves as your protection. Did you know that your land titles have insurance too? A title guarantee is your kind of insurance that protects your buying rights and ownership whenever you want to purchase a property. Utah Title has a full coverage of title guarantee in Utah serving Layton, Fort Union, River Park, and Ogden.

What Is Meant By The Term Full Title Guarantee

When you want to purchase a lot, there are sets of requirement list that you have to procure to get hold of the title under your name. The processing from verification, signatures, and transferring can be a hassle, especially if more than one owner is involved. In some cases, buyers are left hanging and sometimes result in court hearings to settle the procurement issue. The title guarantee saves buyers from unwanted circumstances to happen. It assures the complete transfer from the beginning until the final transfer under your name. If the things are not going as what was dealt upon, worst-case scenarios, and you decide to bring it to court. The full title guarantee is at the buyer’s advantage under the Law Property Act of 1994.

There are two types of title guarantee – The limited Title guarantee and the full title guarantee. As is stated on both types, one has limitations while the other gets the complete coverage. It’s like having your car insured. When choosing car insurance, there are several factors to consider, such as what types of accidents are covered and what is not. There options for you to choose from, and it also depends on what you want and what you can afford. When it comes to property, insurance is a must. Although it may be different as opposed to getting your car insured, it both gives you a sense of peace. Getting title insurance can also help you find previous problems on the “for sale” property you want to purchase. 

Full Title Guarantee

When you choose the full title guarantee, the insurance coverage is that you allow the “seller” to sell the said property. It goes to say that he/she can legally put your lot in the market place. You also give the prerogative to the seller to do whatever means, reasonably, for the buyer to acquire the said property. That the expense it will incur during the negotiation will be at the seller’s account. If the property is registered, the presumption is that the entire lot area, as described on the document, is entirely disposed of. While if it is not registered, the property is considered as the freehold. A Freehold is outright ownership of both the land and the structure.

On the other hand, if it is a leasehold, the presumption goes that the interest is the lease’s unexpired term. A leasehold is a kind of ownership that has temporary rights to the land or the property. Usually, the tenants or the lessee holds the real property’s rights through some form of individual titles from a lessor or the landlord. If it is a leasehold property, the full title guarantee coverage presumes that the lease is still active and that the seller has complied with the necessary documents and terms of the same. The full title guarantee also assures that the buying property is free from all mortgages and other rights, interests, or conflicts. 

Limited Title Guarantee

While Full-time Guarantee is the best option, there are circumstances that the property you want to buy may have limitations. The limitations can make or break your property’s buying decisions. Is it worth it? When the seller has no background or personal knowledge of the property, or usually through a third party seller or properties repossessed, the person selling cannot guarantee the property’s hindrances if the property has existing financial charge or any conflict can arise. The inability of the seller to confirm any covenants pertaining to the property limits the title guarantee. Despite its limitations, it’s still worth it to consider properties with limited title guarantee. It is because the property’s value is less, and you can purchase a good location and take advantage of the opportunity.

What Are The Risk Of Not Having A Title Insurance?

The benefit of buying a property that holds a limited title guarantee is that it is cheaper than properties with a full title guarantee. The Limited title guarantee lot makes the property less valuable. Despite the available security the title insurance can offer, you may still opt not to get one. When it happens, you may be at risk in case there are title defects that go unnoticed. For example, you finally decided to purchase a property that you have saved up for years. You get ecstatic, especially during the signing and the turn-over of keys. Now that you have finally stepped into your new home, letters come into your mailbox only to find out that the property you bought has loans and unpaid property taxes that you have to pay. So without title insurance, you will be held liable to settle the dues and whatever problems the lot has. If you have title insurance, you can prevent these things from happening. Apart from unpaid taxes, few issues can still arise when it comes to the title. There could be a forgery of documents, forged satisfaction or release of mortgages, fabricated powers of attorney, etc. If it does, the insurance will take full responsibility and saves you both money and time.

Buying a home is a meticulous decision to make. You have to take careful and thoughtful action for you not to fall into any trap. It has many bits and pieces of information that you have to deal with unless all documentations are spot on clean. Unfortunately, not all property documents are like that. Some are too complicated to handle and have a lot to take care of, especially if the previous owner fails to take care of its responsibilities. It’s not like buying a clothing piece that you can get whatever you want and return whenever you like. When purchasing a property, you have to figure out your priorities first, the area, and your budget. The budget does not only include costs when sealing the deal. The budget goes as far as how you can sustain the maintenance from taxes to repairs. Buying a home takes responsibility even after purchasing it. So when choosing one, choose with your rational thinking and never downplay littles flaws. That littles flaws can be big trouble someday. It is always better to get rid of it or straighten it up to avoid issues before it even happens. Not to mention the costly mistake it can give you in the future. It is also essential to set realistic expectations.

Prevention is indeed better than suffer the consequence of more significant loss. If you want to protect yourself from any unforeseen claims or title defects of your chosen property, getting title insurance can save you. If you’re still not convinced, seek a professional consultation to help you weigh your best options. Secure your property, have it insured with Utah Title serving Layton, Fort Union, River Park, and Ogden.

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