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Why a Buyer Should Protect Himself with Title Insurance

Most homebuyers are aware of other kinds of insurance but not sure what title insurance is when it comes to purchasing their home. In order to best protect itself, the smart homebuyer must insist that title insurance is provided for at the close of escrow.

Companies providing title insurance protect real property owners and/or lenders, against any potential loss of prospective home buyers may have with respect to liens, encumbrances or flaws in the title to the property they purchase that may have been missed in the original title of the search.

To clarify some real estate legalese, Liens usually form a deposit which usually makes the security of property for debt payments such as judgment, unpaid taxes, mortgage, etc. A burden is something that burdens the title owner.

It is basically an interest in the property, which is owned by another person than the owner. In short, a load is anything that burdens the title with a legal obligation.

For example, the previous property owner might have forged their signature when transferring title or there may be a tax lien owed and secured against properties that do not appear in the original title search.

Title insurance protects against claims of defects in others as others claim ownership, improperly recorded documents, encroachments, fraud, liens, forgery, easements and other items specified in the policy.