Buying a home sometimes comes with unpleasant surprises, including discovering the property has material defects after the closing. Other matters could be more shocking, such as discovering the seller didn’t own the property. Idaho buyers that purchased title insurance might find themselves covered if such a scenario plays out.
The value of title insurance
A buyer might not realize a seller was not forthcoming when putting a property on the market. A will may bequeath the property to the seller, but if the seller never probated the will, he or she does not legally own it. Incredibly, the buyer may not learn about the ownership issue until afterward.
Title insurance provides a means of protecting the buyer or lender from any losses derived from such issues with the title. Disputes over the ownership are not the only problems that may lead the insured to file a claim. Liens might exist on the property, but those liens were not disclosed. Now, the new owner has a home with debt obligations attached. A title insurance claim could address the matter.
Weighing options for title insurance
A title company could assist a buyer with procuring title insurance. However, the buyer might not see the full benefits or understand title insurance. Speaking with a professional capable of explaining how title insurance works may lead the buyer to make an appropriate and informed decision.
Problems related to fraud or legal challenges could cost a buyer a great deal of money. Battles over property lines could lead to unexpected issues and expenses, among other woes. The buyer might have recourse to recover costs and losses with a title insurance policy. That alone may sway some to purchase coverage.