Today, we link to a guest post from DoorFly.com addressing the need for title insurance. The link to the full post is http://blog.doorfly.com/articles/2011/what-is-title-insurance-and-why-do-we-need-it/. [post here].
By way of introduction, the post explains:
If you’ve ever bought a home or a piece of real estate, you have probably heard the term title insurance used during the process. Often times it is something you were told you needed to have and pay for but you really didn’t understand what it was or why you needed it. If you have never purchased real estate of any kind, then you may not even have heard of title insurance before. The goal of this article is to provide you with some understanding of what title insurance is and why we need to purchase it when we purchase property.
The post continues by addressing the need for title insurance:
The main reason that title insurance exists and is considered a necessity in the United States, is because of our system of land records. Land title records is one area that the United States government has chosen not to control. You may legally sell and buy property without recording the transaction with the government in the United States. Because of this, the possibility of misrepresentation or unexpected liens showing up after a real estate transaction are quite possible. In spite of this fact, you seldom hear of challenges to ownership or liens being filed on property that has been transferred. The reason for that is title insurance and the title searches that precede it.
Thanks to DoorFly.com for sharing its informative explanation on title insurance.
