When you purchase a home, there may be other claims on the property that can limit your use or ownership. If a previous owner made some repairs and did not pay the contractor, for example, there is likely a lien on the property in the amount owed. Without title insurance, you could be on the hook to cover those costs. Title insurance covers you in these cases. Earlier we discussed five types of insurance you need for your home. This article will cover why you should buy title insurance.
The Title Search
Before you go to closing, a title search is conducted, looking at the public record to see if any prior claims or liens have been recorded. In more than one-third of cases, a problem arises in the search and needs to be resolved before you can purchase the home. The previous owner may not have paid property taxes, for 
example. These issues should be resolved before you close, but what about after you move in?
What Could Go Wrong?
There may be outstanding claims on the property that do not appear in the public record and will not show up in the title search. There could be missing heirs, such as an estranged son. Perhaps there are conflicting wills, or a will that was not discovered until later granting interest in the property to another party who now makes claim. And the possibility of fraud on the part of the seller cannot be discounted. Any of these scenarios could cause you to lose a great deal of money, time in court, and even the property itself.
Owner’s Title Policy
An Owner’s Title Policy protects you from this possibility. It is a one-time fee paid at closing and covers you and your heirs for as long as you hold interest in the property. The policy states that, should a rival claim on the property arise, the insurance company will protect you financially and legally. You can also request extended coverage in a Homeowner’s Policy. If you are looking for Title Insurance in Atlanta, contact Wharton Law. They can answer any questions you may have about how they can protect you and your property. Give them a call at (404) 965-2767.