Laying claim to a property title often isn’t enough to protect you from unexpected legal and financial obligations. An unforeseen cloud on your title could mean that you’re financially responsible for pre-existing liens on the property—especially when purchasing sheriff’s sales or tax deeds. The only way to guarantee protection from future claims on your property title is by obtaining title insurance.
When you purchase a property from a county auction, you could be inheriting a lot more than just the title. Tax deeds and sheriff’s sales often come about after the property owner failed to pay their mortgage or property taxes. Auctioning these properties allows lenders to collect outstanding debts from new property owners. However, the simple purchase of a property title doesn’t eliminate all of the debts and it’s your responsibility to thoroughly research the property’s title before purchasing to avoid inheriting unwanted debt.
Obtaining title insurance protects you from unexpected claims to your title, whether that’s in the form of legal or financial obligations. While most insurances are bought to preemptively prepare for potential disasters, title insurance is bought to take care of issues that have already happened in order to protect you from being liable. In order to get title insurance for your property, you need to have a clear title, which may require you to file an action to quiet title. Alternatively, you can go through title certification to ensure that tax lien foreclosure due process is complete and accurate. This will prove that you are the sole property title owner, allowing you to get title insurance for your property.
Getting title insurance for your property should be the first step you take after purchasing. While in most cases obtaining such insurance is not required by law, it is strongly suggested in order to keep your assets protected for the long term. If you’re taking out a loan to purchase your home, the lender will require you to obtain lender’s title insurance. However, if you buy the property outright, title insurance is not required.
Purchasing title insurance is a great way to protect yourself from inheriting someone else’s problems, and it’s highly recommended that property owners obtain such insurance—especially when making a purchase through county auction.
Tax Title Services offers a fast, convenient, inexpensive way for real estate investors to obtain title insurance after purchasing at county auctions. Through our certification process, tax title curative consultants verify that all tax lien foreclosure due process is complete and accurate, showing no clouds over your title. Once verified, we’ll partner you with a title insurance agent to get the coverage you need.
Save time and money by contacting the TTS team to find out how our certification process can help get you the insurance coverage you need.