It is not mandatory for the potential homebuyers to pay for title insurance fees. Many buyers often wonder if they will be better off by having such insurance. The decision should be taken on the basis of your specific circumstance.
If you are buying a home in the same locality where you are living now or you know the seller for a long time, you won’t have any doubt if the person is the actual owner or not. In that case, paying for title insurance fees is not necessary at all and will be more like frittering away of your money. However, if the person happens to be unknown to you, title insurance fees are a worth consideration.
Advantages of Title Insurance
It is a safeguard against any hassle that you may encounter after buying a home from an unknown person. In case, you confront any issue regarding your home title, you will always be protected from paying outrageous fees or losing the property. As a potential homeowner, you must be in knowledge of several instances wherein someone who has no legal authority on a property sells it.
For example, a person who has filed for bankruptcy has no legal right to sell his property. If someone who is not acknowledged as the legal owner of a house attempts to sell a property without the original owner’s consent by forging documents, such an act will be strictly punishable in the eyes of law. Furthermore, the sale will be declared null and void by the court.
Unlike other insurance varieties, title insurance is not meant to protect you from unforeseen troubles, rather from current issues related to your property buy. You are protected from the time you sign on the dotted line of property deal. If anything wrong is discovered in later stage, you will have a peace of mind for having been covered.
Getting title insurance fees even when you know the seller is a smart idea. In many instances, the homeowner is not aware of the judgments on a property until a later date. If such incidence befalls you, it means you have to undergo a lot of hassles. By paying for title insurance fees, you can easily avoid unforeseen troubles.
It will be worth an investment as you will always stay protected from paying additional charges or incurring loss. Just imagine how much trouble it will be if you find out that the seller and owner are not an identical person. By availing title insurance fees, you will be relieved from having to deal with any trouble due to defect in property ownership.
In view of the benefits one can get, amount of title insurance fees is very reasonable. Directly talk with the insurance company if you will be required to make payment at one go or it will allow you to pay over a period of time. In some cases, the owners are allowed to club together insurance fees and mortgage cost and pay them at a time instead of paying to different companies.
Author Bio: Jenny Halin is a financial advisor and personal finance blogger who is writing many more financial and personal finance blog content.