Congratulations! You’re finally ready to begin closing on your real estate investment. Closing on any property involves a tremendous amount of work, but one thing that should never go overlooked through all the closing chaos is the issue of title insurance.

Many investors mistakenly believe that owner policy title insurance is unnecessary, opting to only purchase what is required by their lender. While obtaining an owner policy may not be required, purchasing title insurance at closing is an important final step that can save you thousands of dollars in damages due to unforeseen legal troubles.

What Is Title Insurance and What Does It Do?

Title insurance policies protect property owners from financial losses that arise due to ownership. When purchasing a home with the help of a lender, you are required to purchase a lender policy, which protects the lienholder from an inability to repay the debt due to a cloud on the property title. Owner policies are optional and protect property owners from future claims against the title that could result in financial hardship or loss of the property.

Policies can only be purchased at the time of closing. Both lender and owner policies are one-time, flat fees and will not add to your monthly mortgage payment. However, many investors fail to recognize the importance of such an expense and opt out of purchasing an owner policy.

During the purchasing process, a title research company will verify the complete ownership history for the property. If the research company doesn’t find any outstanding claims against the title, purchasers mistakenly believe that means that no future claims can be made. This is not the case! Neglecting to purchase an owner title insurance policy could result in thousands of dollars in legal fees and even the loss of your property should a title defect arise in the future.

Is Title Insurance Required?

If you’re like most people, you probably financed your home through a lender. All lenders require property owners to purchase a lender title insurance policy. Owner policies, on the other hand, are not required. While these policies are entirely optional, it is strongly recommended that homeowners and real estate investors alike take advantage of the opportunity to purchase title insurance at closing.

Clerical errors, title fraud, unknown heirs, pending lawsuits, and other unexpected title defects can come back to haunt homeowners years after closing on their property. Without title insurance, such claims could result in financial ruin at best and loss of your property at worst. The best way to protect your assets is by working with title curative consultants who can provide a comprehensive history report on your title and match you with a title insurance underwriter.

How Can Tax Title Services Help?

Tax Title Services (TTS) offers a thorough certification process with our title curative consultants. Our team will review the completeness and accuracy of the tax lien foreclosure due process, ensuring there are no existing claims on your title. We’ll then match you with our network of partner title insurance underwriters to get the best coverage for your investment.

Don’t take a chance on your property’s title — contact TTS to get your title cleared and covered in as little as 25 days!