Home title insurance works the same way, to protect homeowners from legal attacks and disputes over ownership deed of their new home. Although title insurance transaction is often wrapped in the service closes and is handled by real estate agents, property search and an insurance plan is an important part of any residential real estate transactions.
Home buyers have the right to choose their own title insurance provider, and understanding why insurance is necessary helps property buyers make more informed and possibly more cost-effective decisions.
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Unlike home insurance, which protects homeowners against future disasters are unpredictable, home title insurance to protect homeowners against an unknown error or a problem with their land certificates that may have occurred in the past.
Such as home insurance, buy insurance requires a thorough investigation of the homeland certificates, also known as "property search", or "land title search".
One out of every three Michigan property search reveals problems that can result in lawsuits or financial loss for the owner later. Common problems may include one or more of the following:
Sometimes real estate ownership is not transferred legally by the previous owner, but note the wrong title can also be caused by a simple clerical error.
Government liens for unpaid taxes. New property owners are financially responsible for any liens associated with the title of their homes, even if they do not know the secret of their existence.