Every new home buyer’s nightmare is dealing with an unexpected issue after buying their dream home. Here are three home-buying horror stories that were either remedied or could be solved when purchasing an Owner’s title policy.
A Missed Lien
A Missouri couple discovered a year after buying their home from their landlord that they were in foreclosure despite making all their timely payments. The home had an outstanding lien from a bank that was missed during the title search, so the lender paid the landlord, not the bank.
How did Title Insurance help?
The couple purchased an Owner’s Title Policy, and the title company paid the missed lien from the title search.
Get it in Writing
A mother and son in Jacksonville decided to buy a home from a friend without obtaining proper paperwork. They verbally agreed to pay the friend a down payment and monthly payments for the remainder of the purchase price. According to the Florida Statute of Frauds, this was an illegal agreement as real estate transactions have to be in writing. Later the truth came out that the “friend” did not own the property and was currently incarcerated.
How would Title Insurance have helped?
There is no substitute or excuse for not performing a proper title search, purchasing an Owner’s Title Insurance policy, and obtaining a written agreement on any real estate purchase.
In Philadelphia, a man who wanted to turn a building he inherited from his grandfather into condos found that he no longer owned the property. The property was transferred to a property investor using a forged Deed. Deed Fraud is common among vacant properties and dead or elderly sellers. Most Records Departments only ensure the appropriate paperwork has been turned in and notarized, so it went without notice until it came time to sell the property.
How can Title Insurance help?
Title Insurance can protect you from Deed Fraud. Homeowners with vacant properties should regularly visit the building and collect mail to avoid the attention of would-be thieves.
Contact us today to learn more about an owner’s title insurance policy and how it could save you from a future nightmare.