Title insurance covers you in case people turn up months or years after you buy your home saying that they, in fact, are the rightful owners of the house or the land, or at least had a stake in the transaction.
The insurance companies or their agents begin any transaction by running a title search, sifting through government filings related to the property. They do this before you buy a home or refinance your mortgage to help sort out any problems ahead of time and to reduce the risk of your filing a claim later.
But sometimes they miss things, and new issues can arise later.
I liked this article because it actually taught me something that I was yet unaware of and will be important in the future as many of us will be graduating within the next 2 years. However, I would find it interesting if you could draw a connection between the title insurance and the economy.
ReplyDeletePerhaps this has some effects on the propensity for people to purchase or not purchase new properties?
This is definitely something I will look into when buying a house. This can effect the housing market as people want a bit more security in their funds when purchasing a house and title insurance provides a little peace of mind.
ReplyDelete