While you purchase any property you generally verify various terms and clauses stated in the contract but hardly you will see the original deed to check the chain of transfers. Hence, to safeguard the interest of home buyers and other parties’ ties to a property transaction against all problems related to the title of the property, the Real Estate (Regulation and Development) Act (RERA) orders to buy title insurance. It acts as a key means to reduce the risks associated with the title of that property which is the main document that offers proof of right in the property with legal ownership.
What is title insurance?
· Title insurance safeguards the interests of parties to the legal ownership and the privileges to use the property. Property or home buyers will gain access to its title, but there may be many instances where irregularities about title transfer have been noted. Title insurance acts as a shield against such issues and offers a guarantee of a secure system. It is evident that when any property is bought, financed, or sold, a record of that particular deal is made in public documents. Similarly, events like taxes or liens are also recorded that may impact the title to the property.
· As a buyer, you may verify all the records, but still, there are chances of any issues of missing any defect in the title of a property. This could prove dangerous and risk the rights of home buyers. At such times, title insurance acts as a savior to the home buyers against any types of risks against the title that couldn’t be checked during verifications. Similar to all other insurances, a person has to pay some amount of premium while buying the property.
· A title insurance company verifies all the public records and finds a fix for any issues related to the title of that property. Initially, the title insurance company will verify the public records to see the series of ownership details for that property. Once this task is completed, the assigned guarantor will determine the title’s insurability. There are chances that even the experienced pros may not find the issues related to a title. There may be few issues such as forgeries, hidden heirs, or filing errors that are tricky to be known. Hence, after the searching task is done, the title insurance company will provide the title insurance policy that will aid in safeguarding the buyer from many types of issues that may arise later.
· If the buyer likes to get a mortgage loan while buying a property, lenders will need a loan policy of title insurance. This safeguards the lender’s attention to your property for a time of loan pay off or refinance. For owners, their policy of title insurance safeguards the ownership authority to the title of the property. The best part is that even though you will be charged for this policy only once at the beginning, the protection will continue until you hold the ownership of the home.
How can title insurance benefit homebuyers?
Meets the Legal norms of RERA: Real Estate (Regulation and Development) Act, 2016 (RERA), has made it very important for homeowners, developers, and landowners to buy title insurance. It acts as a protection layer to the transaction while also acts well in providing finances to the property. For homeowners, it will enhance the collateral value of their property and ease their way to get finances.
Negates Lawsuit charges: There may be many issues like pending property taxes, uncertainty in the title, or any claims from spouses on the property. These hidden elements may come up after the purchase leading to heavy financial charges. Title insurance will act as a protective barrier against such lawsuits and negate the load against a buyer by covering all the costs. It will consist of lawsuit documentation costs, charges for the lawyer, any clearance charges, etc.
Takes care of uncertain ownerships:
There are chances that a public record would have missed documenting a deal in a property. There may also be any kind of fraud related to prior title costs or land title claims. Title insurance will act as a shield against such issues and act as a relief for home buyers. Moreover, the policy will also offer a complete series of title ownership records, which will clear the hidden factors associated with such situations.
Saves cost and time:
Buying any property involves many related charges for involved tasks. If you find any fraudulent activities it will demand much higher time and costs. Insurance companies will prove to be a boon in such time by offering all the legal support and also making moves to complete out of the court settlements. Hence, the title insurance will aid in solving if any title ownership issues in a cost-effective way. It will be a one-time payment but saves you from all the mishaps throughout your ownership for that property.
Makes your property secured:
A home buyer will always want to finance a property that is secured and has no hidden issues. Having title insurance for the property will increase the value of that property in two ways. Along with safeguarding the title rights of that home buyer, it will also enhance the confidence of financing companies to perform any deals.
Many people will find title insurance as just a way to meet the norms of RERA, but it will be helpful for many other things other than these aspects. A home buyer can get the title insurance just to be safe for any doubts related to the title of the property. It will assure you to make your investment to be safe and secured. Buying a real estate property will be the biggest financial investment you ever make in your life. Hence, ensure to be safe in this move by buying a title insurance policy. But be sure to associate with a reliable and genuine title insurance firm in Utah, Utah title.