• Resources
  • Privacy Policy
Prime TitlePrime TitlePrime TitlePrime Title
  • Services
    • Home Buyers
    • Home Sellers
    • Real Estate Agents
    • Lenders
    • Builders & Contractors
    • Commercial
  • Team
  • Blog
  • Contact
  • 337.235.0047

Why You Should Get Title Insurance as an Investor

NextPrevious

Why You Should Get Title Insurance as an Investor

By Paul Gardner | Industry Topics | Comments are Closed | 15 September, 2020 | 0

Investing in property is one of the biggest financial commitments you can make. As such, it’s important to protect against issues that may compromise that investment. 

Most investors purchase hazard insurance to protect against risks such as flood and fire. But, many may not understand the need for owner’s title insurance to protect against threats to legal ownership. Investors can save themselves a lot of potential headaches by understanding the benefits of making the one-time purchase for owner’s title insurance.

Understanding the Importance of Owner’s Title Insurance for Investors

Title insurance can be confusing for investors because there are two types that are addressed during the transaction – owner’s and lender’s. If the property is being mortgaged, lenders will require the purchaser to buy a lender’s title insurance policy to protect its monetary investment. That policy does not protect the purchaser. 

Owner’s title insurance is a necessity because it protects the property owners from a financial loss related to ownership of property. In doing so, it can help insure an investment is profitable as opposed to a disaster because of defects in title. 

Defects or inconsistencies in title are not uncommon. The role of title companies in real estate closings is to identify any issues that may prevent a legal transfer of title. Some of those issues include, but are not limited to:

  • Forgery,
  • Undisclosed or missing heirs,
  • Wills not properly probated,
  • Conveyance by a minor, 
  • Incorrect legal descriptions, and
  • Clerical errors in recording legal documents.

An owner’s title insurance policy and can also protect owners from recorded claims against a property, such as liens or judgements. 

There are no guarantees that a property’s title is going to be clear when the title search is run. Title insurance insures real estate investors against any faults that may be discovered in the chain of title so that the purchase can move forward. Insurance will also help defend an investor’s title if it is challenged in the search. 

While it’s easy to disregard the possibilities of clouds on title, the risk is very real and quite common. Even the smallest, most innocuous issues with title can derail a purchase and need to be dealt with before a purchase can be completed. Without title insurance, any real estate investment is at risk. It’s an important point all investors need to consider when moving forward with a purchase. 

Investors, Real Estate Agent Tips, Title Industry, Title Insurance

Paul Gardner

Paul’s core practice centers on the examination of title and real estate transactions. He has extensive litigation experience, and has spent several years representing and advising lawyers, real estate agents, and insurance agents in connection with professional liability claims.

More posts by Paul Gardner

Related Posts

  • What Homeownership Offers You TODAY!

    By Paul Gardner | Comments are Closed

    With higher interest rates and inflation, it’s hard to fathom adding homeownership to your ever growing plate of expenses. The grocery bill alone is outrageous. However, homeownership is a great hedge against long term inflationRead more

  • How to Protect Yourself from Fraudulent Sellers

    By Paul Gardner | Comments are Closed

    Scammers are on the rise – how can you protect yourself? Consider this – you are a property owner of a certain piece of property. It’s raw land, and your primary residence is not inRead more

  • Title Company vs. Escrow Company. What’s the Difference?

    By Paul Gardner | Comments are Closed

    Title Company vs. Escrow Company. What’s the Difference?   One important distinction all parties buying and selling property should understand is the difference between a title company and an escrow company. Though often confused andRead more

  • What is a Title?

    By Paul Gardner | Comments are Closed

    What is a Title?   When someone purchases a home or property, the title transfers to them. This means the buyer legally assumes ownership of the property from the seller. But there’s no paper trailRead more

  • Why Buyers Need an Expert Agent

    By Paul Gardner | Comments are Closed

    Why Buyers Need an Expert Agent Home buyers need a real estate agent by their side throughout the entire process.  The home buying process can be complicated, time consuming, and overwhelming for people who mayRead more

NextPrevious

Contact Us
Request Fees
Title Request

Blog Categories

  • Announcements
  • Events
  • Industry Topics
  • Lagniappe
  • Uncategorized

Newsletter

  • This field is for validation purposes and should be left unchanged.



1819 W. Pinhook Road, Suite 100
Lafayette, LA. 70508

337.235.0047
Contact Us

Services

  • Home Buyers
  • Home Sellers
  • Real Estate Agents
  • Lenders
  • Builders & Contractors
  • Commercial

Site Links

  • Blog
  • Team
  • Contact
  • Resources
  • Privacy Policy
  • Title Request

Newsletter

  • This field is for validation purposes and should be left unchanged.

  • Services
    • Home Buyers
    • Home Sellers
    • Real Estate Agents
    • Lenders
    • Builders & Contractors
    • Commercial
  • Team
  • Blog
  • Contact
  • 337.235.0047
Prime Title