Are you covered? What's often missed when purchasing title insurance.
March 27, 2015
Are you buying real estate? It's likely that you will purchase title insurance (if only at the behest of your lender), but is that all you need? In the majority of real estate transactions, you will never find out that you were not as covered as you thought you were. On those rare occasions, however, you just might experience a very expensive lesson. Finding out you are responsible for potentially thousands and thousands of dollars for something you didn’t do can be very upsetting. Even worse is finding out that you could have avoided the financial hit if only you asked your broker, title agent, or lawyer a few simple things.
Title insurance doesn’t cover three important items. Therefore, buyers should protect themselves by purchasing insurance from a third party vendor to insure against the possible existence of: (1) unrecorded municipal liens; (2) unrecorded code enforcement violations, and; (3) open or expired permits. Making this low-cost purchase just might be the most important purchase you make.