10 Reasons You Need TItle Insurance
Title insurance isn’t required by Tennessee law, but most lenders require it for real estate transactions. It's an essential protection from property ownership pitfalls and snags. Here are the 10 most important reasons you need title insurance from a Tennessee title attorney.
10 Threats to Property Ownership
Title insurance protects you when your property ownership is contested or threatened by unforeseen circumstances, including:
Incorrect Public Records: Someone’s human error could affect your home ownership rights.
Unknown Liens: Judgments and tax liens are personal debts, but they attach to all property that you own in the county where they are recorded.
Illegal Deeds: Deeds created by a person of unsound mind, someone who has misreported their marital status, a minor, or an undocumented immigrant are not legal deeds and could impact whether the deed is enforceable and who is considered the past or current legal owner.
Missing Heirs: When missing heirs or contested wills complicate property ownership, title insurance keeps the ups and downs from derailing your transaction.
Forgeries: Forged documents sometimes make it into the public record, obscuring rightful/legal property ownership.
Undiscovered Incumbrances: At the time of purchase, you may not realize that a third party has a claim to all or part of your property. Former mortgages/liens, non-financial claims, and other issues may limit your rights to property use and ownership.
Unknown Easements: You may not know about easements allowing businesses, government agencies, or other parties full or partial access to your property at the time of purchase.
Boundary/Survey Disputes: A neighbor may have a claim on part of your property if property surveys show conflicting boundaries favoring them.
Undiscovered Will: If you purchased a property from the state (which sold it without an apparent will or heir), your rights may be jeopardized if a will is discovered later.
Owner Impersonation: Common names make it possible for someone to impersonate a property owner. If you purchased property from someone who wasn’t the true legal owner, your property rights are in jeopardy.
How Title Insurance Protects You
Title insurance protects your investment in property ownership. It offsets or covers costs incurred, especially attorney fees, to resolve ownership issues and disputes, including those from previous owners.
The Tennessee Title Attorneys at Blue Note Title understand the ins and outs of title law. If you’re buying or selling property, navigating property ownership after a death in the family, or want to protect your real estate clients, we’re here to help. Contact us today to book a consultation and discuss your property ownership questions.
