Obtaining title insurance is crucial for your new home purchase. Many new buyers may not realize this,
but any error in public records can affect your title, leading to unwanted headaches in what should
otherwise be an exciting process. See the following ways that an error could affect your title and why
obtaining insurance is a crucial step to becoming the owner of your new residence.
Judgements
Courts can determine judgments from previous owners that can result in liens on the property. If that is
not disclosed in the records due to an error, once you purchase the home in your name, you are now
responsible for that amount due. This could directly affect the title that you now hold, and you will be
liable to pay the associated fees. Not only may this not be something you budgeted for, but even if you
can afford it, you are now on the hook for paying someone else’s debt that you had nothing to do with.
Taxes
Negative will aside, errors in appropriate tax requirements can be overlooked. Perhaps the square
footage has been reported incorrectly. You may be responsible for paying the difference that was never
disclosed because of the error. This amount may have affected your decision to close on your home in
the first place. Many other tax requirements, from school district to the age of your home, if reported
incorrectly through public records, can also be costly on your part.
Special Assessments
These can also affect the amount you are paying if reflected incorrectly under public records. They can
include streets and sewers, waste, and even water charges. Without knowing exactly how much you are
required to pay for your entire property and the surrounding areas, you may not have been able to
correctly calculate your fees. Unfortunately, after you have blindly signed your title, you may be in over
your head.
These examples of errors in public records can affect your home’s title, so it is important to make sure
you are equipped with title insurance before the final sale. You will want to be sure you are protected
against any error that has been made without your knowledge. It may be an additional step in the
process, but it is one that you will be glad you made to avoid further issues. Here’s to enjoying your new
home knowing that you are secure in your purchase!