If you’re ready to start the homebuying process, consider title insurance when determining your budget. If you plan on taking a mortgage, the Lender may require Lender’s title insurance which protects the Lender in the event of loss due to a title issue.  In order for a Buyer to obtain protection for his or her investment in regard to a title issue, an Owner’s Policy of Title Insurance must be purchased.  These policies are designed to protect homeowners and lenders from the various title issues that can arise, including the following.

Potential Title Problems

1. Public Record Errors

Unfortunately, mistakes regarding public records are relatively common. When it comes to property ownership, a minor clerical error or omission can have major consequences. Thankfully, title insurance can protect you from the financial fallout of even the most detrimental filing errors.

2. Unpaid Liens

If a property has an existing lien, it can cause a headache for the owner, whether or not they’re the actual debtor. There are more than a dozen scenarios that can warrant a lien on a home’s title, from failing to pay all tax obligations to skipping bail after taking out a bond. By conducting a thorough title search before commencing the transaction, you can confirm there are no unpaid liens against the property you want to buy.

3. Gaps in the Title Chain

Whenever a home changes ownership, whether through a sale or inheritance, its title chain gains a new link. Naturally, this document trail can become fairly convoluted over time. If there’s more than one gap, it could complicate future closings. As such, breaks in the chain of title are one of the most significant issues companies look for when conducting title searches.

For comprehensive title insurance that will pay out when an issue arises, turn to All Points Title & Closing in Hamilton, OH. This title agency has been serving homeowners throughout Southwest Ohio since 1986. Their team is comprised of licensed title agents and a seasoned attorney. To discuss your title insurance needs, reach out online or call (513) 863-7600.