West Knoxville Home Buying 101- What’s Title Insurance?
During the process of buying a West Knoxville home, particularly if you’re a first time buyer, buyers are constantly hit with lot of new information. There are so many things requirements and things to consider, it can be easy for a buyer to go a little nutty. One thing term that first time buyers are often hit with is something call title insurance. There are a lot of cost incurred from buying a West Knoxville home, so it can be easy to shrug off buying title insurance. But prior to saying no to title insurance, it is important to know the true implications of what it is and what it protects.
There are two types of title insurance, lender’s title insurance and owner’s title insurance. Lender’s and owner’s title insurance are pretty much the same thing, one protects the lender an one protects the owner. Title insurance protects against any loss resulting from title defects, whether these defects are known or unknown at the time of the sale. If you are buying a West Knoxville home with a loan, you will be required to purchase lender’s title insurance, but you will have the choice to decide whether or not you want owner’s title insurance for your West Knoxville home.
So how do you know if you need owner’s title insurance for your West Knoxville home?
The problem is, at the time you buy the house, there is no way to know if you’ll need it down the line. A title company will preform search on the property before closing, usually going thirty years back. Unfortunately, not all defects are always found. As with all things, no system is perfect, things can be missed in the search or recorded wrong in public records.
As with any type of insurance, you buy it to protect yourself in the future. You don’t buy health insurance because you know you’ll have serious health issues down the line, you do it to protect yourself in the case that you do. When you purchase owner’s title insurance, it is a one time premium that protects you against any title issues for the time you or your heirs live in that West Knoxville home. It’s always your choice whether or not you buy it, but it will help protect one of the biggest investments you will ever make.