When it comes to purchasing a new home, we know you're making a big investment for your family. If you're counting down the days to your closing, you may be interested to know that purchasing title insurance for your Minneapolis home can help protect you from five common home buying and closing issues. What does purchasing title insurance protect you from?
1. Second Sellers
Second sellers are those claiming part ownership in the home or property you are buying. Distant relatives and ex-spouses can sometimes come forward just before closing and claim part ownership or that the seller you are purchasing from has no right to sell the property. If a judge rules in the second seller's favor, you could be faced with buying them out and potentially lose your down payment and principal paid toward the house. Owner's title insurance can cover any losses you face such as attorney fees and court costs.
2. Property Line Disputes
Imagine getting ready to close on your new home only to be informed that one of your new next door neighbors has built a fence on your property. If they finish their project before closing, this could result in a property line dispute. Your owner's title insurance will cover the cost of any legal battle or any effort to have the fence or other item removed.
3. Hidden Mortgages
Every once in a while, a mortgage can be posted incorrectly. Most thorough title searches will catch these mistakes, but if the incorrect posting is discovered after closing, there could be an issue with your title. Title insurance can help cover any costs to get the hidden mortgage straightened out and ensure your title is valid.
4. Unpaid Taxes
Delinquent tax bills from previous owners can impact your closing and title. Some homeowners have received subsequent tax bills from previous owners after they have taken possession of the property. Your title insurance will cover your costs as long as you have the paperwork from title and tax searches on the property.
5. Unpaid Liens
One of the more common reasons for title issues is unpaid liens. These can cover past construction bills that have gone unpaid or unpaid child support. Once you close on your property, you will be liable for paying these liens when they are discovered - even after closing. Purchasing title insurance can ensure peace of mind and cover any extra costs that are discovered.
Title insurance is a must-have for every new home buyer. As you enter the closing process, it will be helpful to know that you are covered from extra costs and issues associated with your title. Here at Twin City Title, we are here to help.