Is a Signature From 50 Years Ago Really Important to Your Home Ownership?

If you were to ask anybody who has been through the home buying process about their experience then they would tell you that it is not an easy task. Not that it is an impossible one, just that it can often become so overwhelming that many homeowners forget to complete their due diligence.

One of the most commonly forgotten processes is title insurance.

If you are about to embark on the home buying journey and don’t know what title insurance is, this is the article for you. Available only prior to settlement, title insurance is the one product which can protect you the most.

Let’s start with an example.

Imagine that 50 years ago, the home you are looking to buy was once part of an inheritance. When the will was read, the property was to be sold and the profits divided among three people.

Further, imagine that only two of the three people were present at the reading and forged the signature of the third to allow the profit to be transferred to only those two recipients.

The process completed, the home was sold to the current owner, and nothing more was ever said or done.

Now, consider that it’s 50 years later and the third person mentioned in the will has just learned what has happened. This person can and likely will raise a legal claim against the title of your home because of a forged signature.

This means that even though you had nothing to do with the transfer which occurs two instances of property sales ago, you will be financially disadvantaged.

If you are unable to pay the claimed amount then the property can be sold at auction with whatever money remaining being passed on to you.

While it may seem like an extreme example you can rest assured that these situations happen all through the year to homeowners just like yourself who simply can’t believe that a situation like this can occur

How can you protect yourself?

If you can shop the Groupon Coupons page for Finish Line or you pay your bills on the internet then you can arrange your own title insurance.

The first step involves a professional title insurance agent investigation the transfer history of your property to determine if there are any liabilities or intensities which could result in a future claim being made.

If no issue is found with the title or the property itself, the second step involved the title insurance provider drawing up a policy which provides financial protection to the new homeowner in the event that an undiscovered issue is found and a claim is made against the title of the home.

It’s important to know that title insurance is a product which can only be taken out before the settlement of your sale. For this reason, it is imperative that you include title insurance in your pre-home buying checklist to ensure that you are fully protected into the future.