Buying a Knoxville home is one of the largest investments you will ever make. Most buyers do not hesitate to get a home inspection or to carry homeowner’s insurance to protect their investment. But, what about protecting your ownership interest? Strangely, many buyers do not understand the importance of owner’s title insurance. Here is why you need to get owner’s title insurance when buying a Knoxville home for sale.
Unfortunately, many buyers do not understand what owner’s title insurance really is, which is why many people opt not to get it. Simply put, an owner’s policy helps protect your ownership interest in your home, should any problems arise in the future. It is a one time fee at closing that protects your ownership interest for as long as your or your heirs live in the home.
While a title search is done in every real estate transaction, there can be unforeseen issues. Human error can cause things to be missed, forgery and fraud can happen, and deeds can go unrecorded. This is why an owner’s title insurance policy is so important because it helps protect you against these issues.
Here are a few common things that an owner’s title insurance policy would protect you against when you buy a Knoxville home for sale:
Public Record Errors. People make mistakes and when it comes to owning a home, clerical errors can mean big mistakes. If a deed isn’t recorded correctly, it could lead to other larger issues.
Liens. It’s a scary thought to know that liens can exist on your property that are not your own. A previous mortgage can be missed in a title search and previous mortgages aren’t always released.
Illegal Deeds. Prior deeds can come back to haunt you if they were signed off by a minor, person of unsound mind, or missing a signature of a spouse. They can bring up issues in your ownership interest, which is why it is so important to carry owner’s title insurance.
Forgery. Unfortunately, not all people are honest. If forgery issues come to light, it could call your ownership interest into question.
Fraud. If someone previously impersonated a prior owner and signed off on a deed, it could cause major issues in the chain of title. An owner’s policy will protect you if something like this comes to light.
Are you ready to buy a Knoxville home for sale? If there is anyway Knoxville Home Team can assist you, please let us know, you can give Rick at call at 865-696-9002 or send an email to [email protected]. Kati can be contacted at 865-392-5880 or via email at [email protected]. Also, be sure to check out our Knoxville home search page to see what homes are for sale in the area.