There’s a lot of paperwork that goes into any real estate transaction, and most people can find themselves overwhelmed by all of the new terminology they need to understand. It helps to work with a trusted partner like Carpenter Real Estate to help you make your way through these challenging times.
However, you’ll also want to familiarize yourself with some of these concepts on your own time so that you can feel involved and informed when it comes time to work through a real estate transaction. Title insurance in Alpine, TX is one of those things most buyers and sellers have questions about—what is it, and what does it do? We’ve outlined some brief tips below to help our readers understand this concept.
What is title insurance?
A title is the slip of paper that shows that you’re legally the owner of an asset or piece of property, so it’s a crucially important piece of the real estate puzzle. It’s important to also note that titles can either be purchased as part of a transaction, or they can be inherited.
Title insurance is basically a written guarantee that you own your piece of property. Titles can contain “defects”—flaws that undermine your claim of ownership to the property that you purchased—and title insurance protects you against any claims against your property resulting from any type of defect. Title insurance in Alpine, TX can be a complex topic, so call our professional team at any time to gather more information on this subject.
Types of title insurance
When it comes to title insurance in Alpine, TX, it’s important to understand that there are a couple different versions of the product. Lender’s insurance and owner’s insurance are the two types of title insurance, and they both do different things.
Title insurance is intended to protect against claims on a title, and the lender and real estate owner both need protection, so they each have separate title insurance policies. These protect both of their investments against claims like ownership by another party, incorrect signatures on documents, defective recording of legal documents and a host of other issues. All of these can make your title “dirty” and compromise your claim to the land or home you thought you bought, and title insurance stands as a safeguard against these problems.
It’s risky to forgo it
When you’re putting together a real estate transaction, it can seem that you’re paying for many things you didn’t even know existed, and title insurance can be one of those items. If you don’t have it, then you can be liable for things related to previous owners whom you don’t even know—things like back taxes can fall on your shoulders, so it’s ultimately very risky to not have title insurance.
If you’re in the real estate market, there are many factors to consider and many costs that get integrated into transactions. Call Carpenter Real Estate any time and we will be happy to walk you through why title insurance in Alpine, TX is such a good idea.