Title Insurance: More Important Than Ever

Title insurance can seem like an additional expense for the already costly task of buying a house. Now that you've already paid the escrow funds and realtor fees, what do you do? Title insurance exists for a reason.

Protection from the Unexpected

New Jersey title corporation protects your property from any unforeseen claims. These claims can be in the form of liens on the house, probate matters, or old-fashioned forgeries. It is possible, even though it may seem unlikely, and it can happen more often in times of economic stress. 

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A higher foreclosure rate could also lead to increased claims against the property. There are many reasons to file a claim against your property, including a bad divorce or unpaid contractors.

Imagine that you have just purchased a house and suddenly the contractor who installed the windows for the previous owner turns up, claiming that he has never been paid. You suddenly have a claim on the house. 

Imagine that the sellers are going through a divorce, and one of the parties forges the name of the other on the sales documents. You could be contacted by your spouse to claim that the house was sold under false pretenses. They may also try to take it back.

How to Get Title Insurance

Where and when can you get title insurance? This insurance is purchased during the purchase of a property. It is paid at closing. A separate Owner's policy will be required by buyers.

After you have made an offer and paid your escrow money, the seller will accept it. The title agency will then search the records of the property to verify that it is clear of any liens. The most obvious liens will be discovered.