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When it comes to real estate transactions, title insurance is a crucial component, but it’s also one of the most misunderstood. You might have come across various pieces discussing what title insurance is and why it’s important, but today, let’s dive deeper and address some common misconceptions.
Why are we doing this? Because the BBS Notary team is a proud member of the American Land Title Association, and we fully understand and appreciate the value of a good title and escrow expert. We hope our title industry partners and clients share this list of things everyone should know about title insurance.
Title insurance isn’t like other policies you have. Many assume that title insurance works like auto or health insurance. In reality, it’s quite different. Mainly, you only pay for it once. Traditional insurance policies (health, auto, etc.) protect you from future risks—like car accidents or medical expenses—whereas title insurance protects you from issues that existed before you purchased the property.
Title insurance is important for all kinds of properties. Many people believe that title insurance is only necessary for expensive properties, but this isn’t the case. The value of the property doesn’t determine the need for title insurance; the potential for undiscovered issues does. Whether you’re purchasing a modest home or a luxury estate, you could encounter title defects like unpaid taxes or legal disputes. Title insurance provides peace of mind by covering the cost of resolving these issues, which can be substantial and unexpected.
Your title professionals do a lot upfront before issuing a title insurance policy. As we said above, title insurance lasts as long as you own your home, but trust us; there’s a lot of work that goes into making sure your property can be covered by a lifelong policy first. That’s why it’s important to pick a professional, caring title company as your partner. Even before you can close on your new home, a title company will conduct a title search, work to clear any issues and provide a title commitment to you. This is a responsibility that a true title professional takes seriously.
We love doing our part as a mobile notary solution so our title company and other real estate partners can make sure all their transactions are smooth. Don’t work with us yet? You should.
If you’re a title company looking for a nationwide notary partner who cares about the industry as much as you do, BBS Notary is right here! We’d love to connect and start building something special with you. Reach out to us anytime