The common misconception with title insurance is that it only protects the buyer of the property while leaving the seller vulnerable to unavoidable expenses stemming from ownership conflict that is possible to happen in the future. The fact is that the title insurance protects the sellers as much as it does to buyers.

Getting title insurance, in basic terms, absolves the seller of any risk that would arise from the sale of their property. When sellers get into an agreement with a title insurance company or a lender’s title insurance to cover investment, sellers are required to endorse full autonomy to the title company to research the property’s ownership as well as disclose all risks surrounding the property. This research is essential before approaching a decision on whether to close the sale or not.

The one-time payment fee that sellers pay to the title insurance company covers the sellers and their assets and protects their life savings from being spent in legal matters should a third party lays claim over the property sold, or should a miss was committed during the research of the insurance company resulting to a seemingly risk-free sale.

Title insurances save the seller the time and resources to provide the buyers the paperwork they need to prove a legitimate and clean background of the property on sale. Researchers for title insurances are tasked to trace the property’s ownership for as far as the first owner if possible, as well as do a comprehensive digging into public records for conjugal or shared ownership or inheritance claims.

Construction details and land area, as well as floor plans, are looked into with equal importance to eliminate or expose possible area ownership disputes. For while some sellers are oblivious to the exact measurement of their property, neighbors, or the future owners of the neighboring houses maybe intensely keen with exact measures and cause area disputes. Without title insurance to get this straightened before closing the sale, legal proceedings over a small fraction of land or a few square feet in a seller’s lawn can make a run for either the sellers’ or the buyers’ hard-earned savings. Whereas when a seller gets into a deal with a title insurance company such as the reputable Utah Title, Utah’s Leading Title Insurance Company, they protect themselves by paying a small amount now to secure that no surprises like these could arise in the future. Another guarantee is that title insurance companies pay for the costs of any legal disputes arising from a seemingly small miss they did after their own research that caused a big dispute in the future. Since it is the title insurance company’s job to research matters concerning the ins and outs of the property as well as the ownership history of it prior to closing a sale, sellers can rest well knowing that they declared everything to the best of their knowledge.

Even previous legal cases concerning the property for sale or any cases amongst its previous owners that could result in a possible legal case over ownership and claim will be brought to the table for discussion and paperwork by the insurance company.

Between sellers who offer title insurances to buyers and sellers who do not have one, buyers are more inclined to trust those that have title insurance over the opposite. They are also more interested in closing out sales with sellers who hire reputable companies to do comprehensive research for everything related to the property on sale. Having title insurance as a seller transmits the message that you are confident enough that the property you are selling is legitimately yours so much that you are willing to endorse full control of digging through piles of public and private records about the property’s ownership history, lines and construction as well as all previous legal cases if there are any. Also, for properties that will be bought with the help of a lending or financing company, having title insurance is the way to get the requests for financing approved.

While other types of insurances like health and life insurances cover what happens at the time of membership forward (some companies do not cover pre-existing medical conditions for health insurances), the title insurance covers sellers and buyers from the time history of the ownership started which means, yes, starting from the time land was purchased, even when there is no house yet! Title insurances protect buyers and sellers from forgery, forgotten heirs, or any other claims by people who believe they have the right over the property in question. Even those under the table dealings that could make the ownership shady can be uncovered by title insurance researches and in cases of human error or elimination, title companies are keen on finding out the truth behind it. Title defects could be on one of the following examples:

  1. Forged deeds, will or releases,
  • False impressions of who owns the property,
  • A document executed using invalid power of attorney,
  • Misinterpretation of a will or discovery of a will at a later date,
  • Deeds by minors or someone of unsound mind or married person representing As single,
  • Mistakes in recording,
  • Undisclosed divorces,
  • Liens for unpaid taxes,
  • Misapplied tax payments,
  1. Heirs who surface years later,
  1. Forgeries, missing heirs, and conflicting wills are the most common problems.

Prior to closing the sale, title insurance companies will lay out the groundwork for the steps a seller must accomplish to free himself of any possible future risk. Sellers will be informed of any problems that were uncovered during the intensive research and sellers must be able to fix it with the assistance of the title insurance company. The title company takes the responsibility of record-keeping of documents and contracts concerning the sale.

Having title insurance created as early as the decision to sell the property was made may seem like over-the-top to some but nowadays, it is the single and most-guaranteed way to close out a sale with minimal to no risk at all. This means guaranteed protection for you, your family, and your money.

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