Technically, you can, but if you are financing your home, your lender will likely want you to have it in place in order for them to feel safe that nothing will jeopardize their money. Many financial institutions will be unwilling to lend you money to purchase a house unless you have certified title insurance. This insurance coverage assures them that the seller is the bonafide owner of the property you wish to acquire. In addition it will help you to do the following:
To prevent financial loss
Technically, buying this insurance coverage will offer financial protection if legal trouble arises after purchasing the house. Therefore, you must visit a title insurer before penning a sales agreement with the property owner.
To protect your home ownership
Homebuyers need this insurance to feel reassured that they legally own the property they wish to purchase. As a result, the mortgage lender will feel persuaded to release the loan to enable you to finalize the sales agreement with the previous owner.
To avoid property fraud
You wouldn’t want to pay for a house and get a fraudulent property title in return because the court can quash it without hesitation. Therefore, getting this insurance beforehand will provide financial protection if you purchase a property from a fraudster.
To protect the property for posterity
Sometimes, ownership wrangles can begin once the new property owner passes on, making it easier for the former seller to repossess the house. Therefore, you should get this insurance for your children’s sake in case death strikes by bad luck.
To protect yourself against unpaid bills
A few home sellers dispose of the house before clearing all the essential payments like garbage or land rates. You should smarten up and get this insurance before purchasing the home to avoid all these expenses.
Summary
Please partner with a registered title insurance provider for reliable financial protection if legal trouble surfaces unannounced. You can’t afford to risk the loan your mortgage lender will give you because you must repay it within the agreed timelines.