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What Every Home Seller and Buyer Should Know About Title Insurance

Most home sellers and buyers have been informed that obtaining title insurance will provide them necessary protection over possible title defects; but many remain uncertain why this is so — or even about what title insurance is.

Why the Seller Needs to Provide Title Insurance

Any prospective buyer will need evidence that his investment in your property is free of title defects. In fact, your contract of sale probably requires it. The title insurance policy that you provide the buyer is a guarantee that you are selling a clear title to your real estate unencumbered by any legal attachments that might limit or jeopardize ownership. Title insurance reassures your buyer that the title has passed careful scrutiny. In addition, it can help your deal close more quickly and easily.

Why the Buyer Needs Title Insurance

Without a title insurance policy, you may not be fully protected against errors in public records, hidden defects not disclosed by the public records, or mistakes in the examination of the title of your new property. As a result, you may be held fully accountable for any prior liens, judgements, or claims brought against your new property.

(Note: The information in this article is intended to be general in nature. Plan to discuss your particular circumstances with an attorney for how this might apply to you.)