Buying a home is an investment that can be a huge personal milestone. However, it also comes with a lot of costs that must be covered. There are mandatory fees like inspections and mortgage rates, and there are non-compulsory fees that can be forgone in order to save money on your purchase. One such fee is title insurance.
Do i need title insurance when I pay cash for a house?
Whether you’re a first-time buyer or you’re buying a home for the fifth time, the last thing you want is to end up with some sort of financial loss after you buy a property. Thankfully, title insurance protects against some of the most common issues that arise during the buying process.
1. Clerical Errors
The truth is, a title company can miss some important details when it carries out a thorough search of a property. It might not even realize there are tax liens against the property or that there is a mortgage owed by the seller, says Linda Haltman, cofounder of Hallmark Abstract Service in NYC and Long Island. Read more https://www.companiesthatbuyhouses.co/west-virginia/home-buying-company-huntington-wv/
2. The Previous Owner Did Not Make Payments
There are a number of instances where the former owner might not have paid their property taxes or HOA fees, despite the fact that they were due in the first place. This could happen because the person died, was bankrupt or was otherwise unable to make their payments. In this scenario, the lender would be within their rights to go after the new homeowner for their outstanding debts.
3. Unpaid Taxes, Liens and Court Judgments
It’s easy to lose your biggest asset if you can’t afford to pay a large amount of money to the IRS or a court judgment. It’s an expensive and stressful process, especially if you don’t have a clear path to recover your money.
4. Faulty or Fraudulent Documents
A home is a valuable asset, and the people who own it can have a variety of problems with their titles. This can include forgery of documents, a husband or wife trying to sell the property where both of their names are on the title, undeclared or missing heirs, conveyance by a minor, an invalid will and mental incompetence of a grantor.
5. Boundary Line Issues
There are several things that can cause boundary line issues with a home, such as improvements that encroach past the property lines, violations of building restrictions by the previous owners and unrecorded easements established by use. These issues can easily be corrected by having a title agent complete a thorough review of the property’s title and lien history before closing. Also read https://www.ibuyers7.com/west-virginia/ibuyer-huntington-wv/
6. Problems With The Seller
A home is a massive investment, and the person who owns it can have a range of problems with their titles. This can include problems with forgery of documents, a
husband and wife trying to sell the property where both of the partners’ names are on the title, an invalid will and mental incompetence or ineligibility of a grantor.