Acquiring a new investment property involves important steps, not the least being obtaining title insurance. This can help you not only protect yourself but also your lender against any defects found with your chosen property’s original title before the sale. The history of your intended property will be insured so If any unknown prior risk causes your property sale to fall through, title insurance can protect you from a potential large financial loss.
Liability
Title insurance can ensure your financial safety in the event that any problems are found. Those problems can include anything from fraud and unreported liens to simple mistakes on the deed that can have a large negative impact on your sale. Any past discrepancies will be covered by your title insurance to help you avoid incurring a large debt that you never intended. Your title insurance can protect you from being liable for any costs arising from issues with your investment property.
Asset protection
Title insurance is essential to cover costs, such as legal fees, that may arise. Perhaps someone contests ownership of the property. Your policy can help you avoid fees for any time spent settling such a contestation. Without it, you may be required to pay a large sum that you may not be able to cover. This puts you at risk for actions against assets you may have such as other professional or personal properties or even personal bank accounts.
Title insurance can keep your assets secured
Potential buyers will go through the process of exposing any defects with the property you are offering. To avoid taking a hit for anything that wasn’t uncovered during your initial inspection, such as loss of or even falsified records from the previous owner, title insurance can help you avoid a potentially devastating financial loss that you were never aware of.
Now that you know why you’ll need a title insurance policy, contact us to see how your specific title terms work to protect yourself and your investment. Take the next step in securing title insurance on your properties for sale so that you can
enjoy a much less stressful process.