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  • NVT&E Team

Why Do I Need Title Insurance?

Updated: Jun 8, 2023

wooden house keychain with insurance written on piece of paper against a pink background

When investing in a new home, many buyers get lost in daydreaming about the future. Though, before they can move forward with their plans, they have to get through the closing.

There will be lots of documents to sign and closing costs to pay. And don’t forget the question about title insurance - do you want a policy? If you find yourself contemplating whether or not investing in title insurance is a necessary step, get the policy.

You need title insurance. Here’s why.

What is a Title Search?

A title search will be performed when you purchase a piece of real estate, regardless of whether it is residential or commercial. This is a thorough look at all the public records and transfers that are associated with the subject property, going back as far as the property goes.

Each of the documents in the search is carefully examined. A chain of title for the property is assessed which helps to confirm that the seller has the authority to legally sell the real estate. The examiner is also looking for things that cloud the title, such as liens, judgments, outstanding taxes, bankruptcies, etc.

A title commitment will be drawn up to reflect the results of the title search and offer a title insurance policy. Keep in mind that this offer may or may not have conditions based on the results of the title search. Any title issues that are found will almost always need to be cleared up prior to closing.

Why You Need Title Insurance

While title examiners are diligent in their work, mistakes can still happen. This may be at the oversight of the title expert or it could be due to recording errors or even forged/fraudulent documents.

The problem? Things that are missed may surface down the road. When they do, you will be responsible for handling them since you are now the owner of the property. And, yes - this applies to those title defects that were already there before you took ownership.

Depending on the specific issue, fighting it could be very time-consuming and costly - especially if you find yourself in the middle of a legal case within the court system.

This all puts your rights to the title of your property in jeopardy.

Although there is no guarantee that you will prevail in this battle for your property, having the right team fighting for you can make a huge difference. And that is precisely what you get with title insurance.

If any title issues arise over the years, you simply file a claim with your title insurance company and they handle the rest. They know the right steps to take and will cover the expense of an experienced legal team if necessary. Your title insurance policy will go to work for you to help protect your rights at every step along the way.

And that’s why you need title insurance.

Still Have Title Insurance Questions?

Investing in title insurance is an important step when buying a piece of property. While it is not always a mandatory purchase, it is one that comes highly recommended. To learn more about it and to understand why you need title insurance, the title experts at NVT&E can help.

Contact us today at (703) 938-3200.

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