Why I’ll never buy a house without title insurance again!
Aug 21st, 2014 | By FCT
Buying a house without title insurance:
I know the Title Insurance product so well that I’ll never buy a house without getting this type of insurance again. Not only am I familiar with all the claims that we deal with and pay out, but also, when I hear different cases described in the media, I often tell myself that if these people had taken out a title insurance policy, they would have benefited from its cover and compensation.
Title insurance gives you numerous benefits:
You already insure your house against fire, theft and other risks, so why not complete your protection by taking out title insurance?
When you buy a property, not only do you buy the land and the buildings constructed on it, but you also buy the title (the right of ownership). The deed of purchase that you sign is published by the notary or lawyer at the registry office and it names you as the legitimate owner of this residence – it’s your title of ownership.
Title insurance guarantees to you that you won’t suffer any loss or damage following various problems that might affect your right of ownership, such as the following:
Real estate fraud through identify theft:
A fraudster takes out a mortgage against your property or sells your property without your knowledge.
Irregularities that an updated certificate of location/survey/real property report could reveal:
Buildings encroach on a neighbouring plot, fail to comply with a zoning regulation, or have been built without the required permit.
After the date of your transaction, liens on the building are published/registered against your property:
The previous owner did not pay the builder.
If these situations arise, you might have to pay large sums of money in order to regularize your title of ownership. These are just a few examples of the cover offered by our ownership policy, which includes more than 30 forms of cover.
A one-off, affordable premium:
Unlike home insurance, which you have to pay each year, title insurance is paid only once and protects you for as long as you remain the owner. It even protects you when you are no longer the owner, for example, if a third party sues you in relation to a risk covered under the terms of the insurance policy.
Continuation of coverage:
If your title of ownership is transferred to your children, spouse or heirs, the protection granted by your insurance policy continues, without any additional premium required to be paid.
Helps to streamline transactions:
Taking out title insurance can help in completing a transaction within the planned time frame, while also giving the buyer adequate protection in the event that a problem is discovered in relation to the title. This helps to streamline and reduce the lawyers’ tasks and reassures the owners as well as their lenders.
Simple, efficient claim process, irrespective of fault:
Keep in mind that it is always preferable to buy title insurance at the same time as you buy your property. Having said that, you can always order our insurance product at any time. It’s never too late to do the right thing, so get yourself protected!
Do you have a story about how title insurance protected your greatest investment? Tell us about it by posting it here!