But just like with a residential real estate buy, title insurance for investors is critical, and for many of the same reasons.
There are two types of title insurance. The homeowner’s policy provides essential protection to the buyer. Lender’s title insurance policy protects the lender. Both are usually issued at closing and provide comprehensive coverage to both parties.
However, the homeowner’s policy is optional in the state of Virginia, which is unfortunate. Because even with the most careful research, you cannot rule out fraud or other undisclosed issues. That’s why making a one-time purchase of homeowner’s insurance is highly recommended.
Why Title Insurance for Investors is Necessary
Title insurance gives the investor peace of mind by shielding you from hidden risks that could surface after you’ve purchased the property. For example, unknown heirs, errors in public record, unsettled liens, fraud, and more.
This powerful tool is the assurance an investor needs that their property rights are protected. It allows you to navigate your investment journey with confidence, knowing that your financial interests are protected should any legal challenges arise.
What’s more, title insurance mitigates the risk associated with possible title defects by making sure you won’t bear the substantial financial loss caused by legal issues in the property’s history.
Streamlined Real Estate Transactions
This comprehensive approach minimizes delays and complications that can occur at closing.
Title Insurance for Investors Protects Against Fraud
Lilly Title & Settlement takes extraordinary measures to protect you from fraudulent activity. That’s why we think you should have an understanding of the many forms of fraud.
Omissions and errors in public records can cloud property titles, which can lead to property disputes.
Concealed Liens and Encumbrances
Legal claims or hidden debts against the property that are not disclosed place buyers at risk of assuming these liabilities.
Undisclosed Heirs and Ownership Claims
Heirs that are unknown come forward to stake a claim on the property.
Identity Theft and Impersonation
When someone assumes another person’s identity and tries to buy or sell a home fraudulently without the knowledge of the rightful owner.
Forgery and Falsification
Documents that are forged or manipulated to misrepresent property ownership.
Choosing A Title Company for Investors
At Lilly Title & Settlement, we are deeply committed to conducting a thorough and meticulous title search, examining historical records, identifying existing issues such as liens, finding undisclosed heirs or errors in documentation. We look for anything that places a cloud on the property’s title.
In addition, we are also known for the following:
Transparency and Clarity
Expertise and Customer Service
Reviews and Industry Reputation
Title insurance for investors is critical but choosing the right title insurance company is equally important. Our reputation speaks to our professionalism, our reliability, and our efficiency in handling both title insurance and real estate settlements.
Choose your title company wisely. If you do, it will pay you back when you need it most.
Lilly Title & Settlement is obsessed with nailing down legal details and making sure that your property has a clear title. We’re also more than a little obsessed with protecting your property from unknown legal threats for as long as you own the property. Learn more about us here.