Home Buyer Tips: Do I Need Title Insurance?
“Do I need title insurance?” is often asked by Houston County GA buyers who are unsure if the extra expense is worth it. Title insurance provides protection for the policy holder if another entity makes a property title claim.
In Georgia, there are 2 types: Lender Title Insurance and Owner Title Insurance.
- Lender Title Insurance protects the lender, is for the amount financed, and is required as a condition of the loan.
- Owner Title Insurance is optional, a one-time expense, made available at closing, and remains in force as long as you retain an interest in the property (it also remains in effect if heirs retain an interest after the original owner has died)
Do I Need Title Insurance?
Technically, Owner Title Insurance is not required. However, I recommend all my buyer clients get Owner Title Insurance to ensure they are protected in-case an unknown risk such as forged documents, public record mistakes, title defects, and even back taxes and/or liens comes to light after they have purchased the property. In some cases, it may be determined they do not legally own the home. Having Owner Title Insurance will help alleviate title issues that arise, pay for a lawsuit defense if necessary, and protect the buyer from financial loss up to the policy dollar amount.
Note: If the previous owner had Owner’s Title Insurance, there is the possibility the new owner can get a REISSUE rate at a decent discount, with the new policy re-issued in the new owners name.
How can Houston County home buyers ensure they make informed home purchasing decisions? Employ the services of a well qualified Houston County Real Estate Professional!
As always, Houston County real estate information is brought to you as a courtesy by Anita Clark, your Warner Robins Real Estate Consultant.