What are Title Defects and How Do You Avoid Them?

Purchasing a new home can be a very exciting endeavor. You can’t wait to finally move into your house and start your life in it. The last thing you need is something like a title defect to hurt your legal rights to the home. Here is some further information about title defects and how you can avoid them.

What Is a Title Defect?

A title defect refers to any issue that threatens a homeowners’ ability to sell a property. Liens and judgments are examples of the most common types of title defects people may run across. Title defects may also result from fraudulent documents, clerical errors, illegal deeds, missing heirs, unknown easements and mechanic’s liens.

If any of these defects are discovered, the seller will have to clear the title before completing the sale of the property.

How Do You Avoid Title Defects?

Finding out that your home has a title defect down the line can cause a lot of stress and headaches. Therefore, it’s best to avoid the situation in the first place. You can do this by conducting a title search. A title search company in Annapolis, MD, like Capitol Title, can find various issues with the property’s title and inform you promptly. 

Should You Still Buy Title Insurance?

If you hire a title company to conduct a title search on the home you wish to purchase, you might think that it is not necessary to buy title insurance. However, even the most thorough title searches can miss defects sometimes. For example, the search might miss an unknown heir. This person may try to go after ownership of the home in the future.

If you have title insurance, it will compensate for the legal costs resulting from title defects. Otherwise, you could potentially be out thousands of dollars. It’s a small price to pay for peace of mind.

Can You Choose a Title Company?

Many people are unaware that they have the option to select their own title company. It may be in your best interest to shop around. When choosing a title company, look for a company with extensive experience, excellent communication skills, thoroughness and timeliness. 

If you wish to purchase title insurance, you may want to get in contact with a reputable title company today.