When you are looking to purchase a property, you may not be aware of the legal issues that could arise. These issues are more common than you may think. Title insurance can protect you and your property from a wide range of problems tied to the property. A title insurance policy provides peace of mind that the property is truly yours. Here are some of the most common issues that may arise during the closing process.
Unknown Liens. A lien may appear on your home’s title if any debt is left with the property. The previous homeowners may have fenced in the backyard, replaced the roof, or added an addition to the home. If they did not fully pay the contractors, they can come back and require that you, the new homeowner, make the payments. With title insurance, we identify and resolve these issues before the purchase.
Forgery or Fraud. In any industry, fraud and forgery are present, but with real estate, fraud is rampant. With technological advances, anyone can forge a document. A title search will catch any fraudulent documents before someone else can claim ownership of your home. Title insurance also provides financial protection and legal help if these issues arise.
Error in Public Records. Something as simple as a typo in a legal description or a misspelled name in a deed can create confusion about property ownership. These seemingly small errors can lead to bigger legal problems. Title insurance helps correct or defend against these issues.
Undisclosed Heirs or Claim of Ownership. In the event a long-lost family member of the previous homeowner knocks on your door, title insurance guarantees that the property is legally yours.
Boundary and Survey Disputes. Encroachments and boundary disputes are common issues when purchasing a property. There may be some confusion about where your property ends and the neighboring property begins. Title insurance covers any costs that may come with these disputes.
The Capitol Title team is prepared to guide you through the homebuying process. Our staff of experienced and professionally trained attorneys, settlement officers and coordinators is devoted to the highest standards of service and shares our commitment to professional excellence. If you are located in the Maryland, District of Columbia or Virginia area, our team is ready to be your trusted title partner.
