Many people in Delaware who are preparing to purchase a home may wonder why they need to bother with purchasing title insurance. People may especially think this small purchase is unnecessary when they are buying a home that has been owned by a single owner for many years. However, failing to purchase this insurance can be a big mistake.
Title insurance is designed to protect prospective buyers from title defects. When a person is purchasing a property, he or she will receive a title to it. The title itself gives him or her the right to use the property as he or she sees fit. When the title is encumbered by things like old liens, easements and other issues, clearing up the problems later can be very expensive.
When a person purchases title insurance, the insurance company will complete a property records search to uncover any title defects. The company will then offer the policy for a normally low, one-time fee. People might wonder the point of purchase if no defects are discovered. When a person does have a policy, however, potential defects in title later discovered will be the responsibility of the title insurance company to correct, rather than the new homeowner’s.
Residential real estate transactions can be exciting as people prepare to buy a home. A home purchase may be the largest financial transaction a person may make in their life. Although the associated fees may seem ridiculous, having adequate protections in place in case problems later rise is important. Often, people who are thinking about buy a home may benefit by enlisting the aid of a real estate attorney. An attorney may be able to review title insurance offerings and provide advice regarding a particular policy. He or she may also assist with closing and other documents.