Although title insurance isn’t required by law, AZ real estate attorneys say that the vast majority of lenders require that borrowers have it in order to protect themselves. Surprisingly though, many homeowners have heard of title insurance and probably have its coverage but don’t actually know what it is. AZ real estate attorneys explain that title insurance protects you from instances in which the real property title you purchase has errors or isn’t whole. If you don’t have title insurance on your home and there is something wrong with the title it could cost you a lot of money. One AZ real estate attorney provided this example: if you purchase a home and the previous owner owed several years’ worth of HOA fees and the HOA fees stay with the title of the home, you are liable for paying those HOA fees. This could essentially cost you hundreds or thousands of dollars. When you purchase real estate title insurance, it protects you from instances such as this by covering the cost.
In addition to consulting with an AZ real estate attorney, buying property title insurance for your home is another way to protect yourself and ensure that the home you are buying has a clean title. Many title insurance companies will actually look into the history of the property you are buying and ensure that there aren’t any errors or gaps in the title before you purchase the home. AZ real estate attorneys say this way you can continue on with the transaction knowing that the piece of property you are purchasing is legal and you are protected from anything that may arise in the future. If you have additional questions about property title insurance consult with an AZ real estate attorney to have all your questions answered and to better understand why purchasing this when buying a home is so important.