When you purchase a home, you will most likely be required to have title insurance.  Why?  Because the chain of ownership of the property you’re buying could have resulted in problems that will cost you money if they are not detected.  Some of the most common include liens that could transfer to you as the new owner, omitted heirs who could claim ownership of the property, fraud in past transactions, or errors in the public record.  A title search can reveal issues prior to you taking possession of the property, and title insurance protects you and your lender should issues arise at a later date. 

For a detailed explanation of title insurance, read this helpful article from Jordan Lulich, writing for Forbes.  Yes, it’s an added cost of ownership.  But, it’s a one-time cost that’s worth the price in protecting your peace of mind.

Tags: budgets, Forbes, Title Insurance