Most people hire a real estate agent when buying a house, and you can choose from over 3 million agents.
Your agent helps you find listings, view homes, and write an offer. However, your agent also assists with the closing process and answers your questions.
Many new homebuyers have questions about the home-purchase process, including questions about title insurance. After all, there are myths circulating about title insurance, and many aren’t true.
Below, we debunk some of the classic myths surrounding title insurance.
Myth #1: New Properties Don’t Require Title Insurance
Many people think that you won’t need title insurance coverage if you buy new construction. After all, how could you have a problem with a home’s title if the house is brand new?
You can still experience problems with title for newly constructed homes. The primary problem you could have is, if there are mechanical liens on the house, which occur when contractors fail to pay their subcontractors. There could also be hidden title defects from when the developer purchased the property, or any liens that were not properly filed during the development process.
You can learn more about new home titles by contacting an experienced title company.
Myth #2: You’ll Never Need to File a Claim
Some people also believe that title insurance is a waste of money because you’ll never need to file a claim. Again, you can talk to a real estate title company to learn that this isn’t true. The title insurance industry handles millions of dollars worth of claims each year.
There is always a risk when buying a home that the title may have issues.
Myth #3: You Don’t Need it Since You Have Homeowner’s Insurance
You must purchase homeowner’s insurance when buying a house, because you need the protection. However, you shouldn’t assume your homeowner’s insurance policy covers the title as well, because it doesn’t.
You’ll still need to hire a title agent for a title insurance policy. A title insurance policy only covers the home’s title, while your home insurance covers your home and belongings.
Myth #4: Lenders Don’t Require It
Another myth is that lenders don’t require title insurance, so you won’t need it. On the contrary, lenders always require title insurance, as it protects their interest in the deal.
You can hire a real estate attorney for assistance with your title insurance options. You might also talk to a real estate lawyer to learn more about the closing costs you must pay.
The truth is that you can buy two types of title insurance, and both are vital. The first is a lender’s policy, which your lender requires. The second is a homeowner policy, which you need for your protection.
You Always Need Title Insurance
The truth is that you always need title insurance when purchasing a property. The property’s age or history doesn’t matter. It also doesn’t matter if you pay cash or get a loan.
You need title insurance. Contact us at Emerald Coast Title Services to purchase a policy. We can help you with your title insurance needs and the other steps required for closing.