Buying a home is a big milestone, but it can also feel overwhelming. There are many steps in the process, and it’s important to make sure your investment is safe. One of the best ways to protect yourself is by getting title insurance.
Title insurance helps make sure there are no surprises with the ownership of your home. It’s a way to protect your rights as the new owner and avoid problems in the future.
What Is Title Insurance?
When you buy a home, a title search is done to check for any issues with the property’s ownership history. This helps find problems like unpaid taxes or ownership disputes. But even with careful checks, some problems might not show up right away.
That’s where title insurance comes in. It protects you if any issues come up later, such as:
- A previous owner didn’t pay their taxes or bills.
- Someone forged or faked documents in the past.
- Mistakes were made in public records.
- An unknown heir claims they own part of the property.
Title insurance gives you peace of mind, so you can focus on enjoying your new home.
Why Do You Need Title Insurance?
With all of the paperwork involved in a real estate closing, you might wonder if title insurance is really necessary. Here’s why it’s a smart choice:
- Protect Your Money: If someone challenges your ownership, title insurance helps cover legal costs and any financial losses.
- Keep Your Home Secure: With title insurance, you can feel confident that no one else can claim your home.
- Lenders Require It: If you’re getting a mortgage, the lender will usually require title insurance to protect their money. You can also buy an owner’s policy to protect yourself.
Common Title Problems
Even in South Carolina, where property laws are carefully followed, issues can still happen. Some common problems include:
- Unpaid Taxes or Bills: Past owners might leave behind debts that could become your problem.
- Boundary Disputes: Neighbors might disagree about where property lines are.
- Errors in Records: Simple mistakes in paperwork can lead to big problems.
- Unknown Heirs: A long-lost family member of a previous owner might claim ownership.
By getting title insurance, you’re protected from these unexpected surprises.
Title Insurance in South Carolina
Real estate closings function differently from state to state. In South Carolina, a lawyer must oversee the closing process, which includes reviewing and issuing title insurance. This helps ensure transactions follow state laws and protect homebuyers from potential issues.
Why Is Title Insurance Important in South Carolina?
Even though a title search is conducted before closing, some issues may not be immediately visible in public records. Title insurance protects buyers from financial loss due to hidden title defects. Here’s why it’s essential in South Carolina:
- Attorney-Involved Closings: Since real estate closings must be conducted by an attorney, working with a law firm experienced in title insurance can help prevent costly mistakes.
- Protection Against Title Defects: Title insurance helps protect buyers from ownership disputes, unpaid liens, and errors in public records.
- Lender Requirements: If you’re using a mortgage to buy a home, your lender will require title insurance to protect their investment. While this protects the lender, an owner’s title insurance policy ensures you are personally covered as well.
Remember — title insurance is a one-time purchase that lasts as long as you own the property. That’s why it can be an invaluable investment for protecting your home.
Contact a Real Estate Closing Attorney in Lexington, SC Today
Buying a home is a big step, and making sure your title is protected is just as important. McCutchen McLean is here to guide you through the closing process, conduct a thorough title search, and secure the right title insurance policy for your needs.
Contact McCutchen McLean today to schedule your real estate closing and protect your investment with confidence.
