Most likely, there are no hidden defects in title on your new home, but owning a home requires more than just a deed to the property. Owners need to have “Clear Title.” Other people may have certain claims to the house that a deed will not erase and they can go back as far as the earliest owners of the home. In order to protect your investment, it is a good idea to purchase title insurance.
There is an owner’s policy and a lender’s policy–both protect the insured against an unknown defect in title. A defect could produce additional costs in the future. If you have title insurance, the insurance company would defend you in court and pay any settlement amount you might owe on the defect.
The policy is usually paid for by the buyer for the lender’s title insurance policy and it only protects the lender. The owner’s policy protects you, the homeowner, from any defects in title once you take possession of the home.
The Restivo Team will guide you through the process-from start to finish. Contact us today to purchase your new home.