Today’s topic is title insurance! How exciting :)

A little more about what title insurance is. To sum it all up, when you buy a property or real estate the previous owner, their families, and/or their heirs could still have rights or claims to the real estate or property you are buying that you did not know or were not informed about. The property could even have a lien on it. Many organizations or companies could also have interested in the property. People like individuals or corporations could have interest in the property. Or governmental bodies, contractors, lenders, judgment creditors, and even (play scary music here) the Internal Revenue Service.

The problem is that even if you buy the property completely innocent of knowing anything about these claims on your property, these rights and claims still stand and stay attached to that property until it is resolved. Sounds pretty unfair doesnt it? I think so.

So it goes, that it makes sense that you get a ‘clear title’ on the property you are purchasing before you do buy it. How do you do that? You go to a title insurance company . They are the ones who help you find undiscovered or hidden claims and help you know what kind of real estate you are really buying.

But there is a catch. Of course, there is always a catch. The real estate that you want to purchase could have “hidden risks”. That is basically any rights or claims that are not shown by the public records. “Hidden risks” actually could provide enough reason for a claim to be valid even after you have purchased the property.

So this is also where title companies and title insurance comes in to play when buying real estate. Title insurance can protect you by having a title company defend you in court and/or bear the cost of settling the case for you if the situation comes up.

So my friends. That concludes the session for today! I hope you found it helpful.