It’s a mistake to assume that just because you’re investing in a land property that you do not need title insurance or owner’s title insurance. Your property most likely has an extensive list of previous owners. These previous owners could have outstanding debts for unpaid property taxes, unknown heirs of the land you’re planning to purchase, or even unpaid debts to contractors who performed work on the land. Once you’ve bought land and ownership has been transferred into your name, you can be held legally responsible for any previous owner’s debts or errors. By protecting your land investment with title insurance and owner’s title insurance, you’re essentially protecting yourself from past claims against your property that occurred before obtaining ownership of the land.
What Can Owner’s Title Insurance Protect?
You may think that because the land you’re making an investment in sat vacant for years that owner’s title insurance is completely unnecessary. However, you should reconsider your stance. Once you’ve secured ownership of your land property and the deed has been transferred into your name, you can be held liable for past claims against the property regarding unpaid liens. Furthermore, unknown heirs of the previous title holders may try to claim your land property. Owner’s title insurance will fully secure your ownership of the property and provide a legal barrier against any past claims.
What If I Opt Out of Owner’s Title Insurance?
Opting out of owner’s title insurance means that you may potentially have to legally defend yourself in court against any unforeseen claims that may arise or unknown heirs staking a claim against your new land property. Furthermore, debt collectors may attempt to hold you financially responsible for unpaid debts against your property, resulting in a costly legal battle to defend yourself. Lastly, you can even have to deal with having to fix extensive title errors that weren’t caught at closing. By making a one-time investment in owner’s title insurance and title insurance, you can avoid this altogether and have peace of mind.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, and LinkedIn.