The Answers for Title Insurance Massachusetts Residents Need

If you live in the Bay State and are preparing to buy a home, you likely have questions regarding the best Title Insurance Massachusetts has to offer. You may also be confused about what Title Insurance is, what it does, and why you need it.

It’s common for first-time homeowners to get overwhelmed with the home buying process. There are countless forms to sign & submit, not to mention hurdles to jump. Such is the case with Title Insurance, which is due before you take out a mortgage on your home.

In this blog, we’ll clear up why homeowners need Title Insurance, as well as how it protects you and your home from unforeseen risks.

What is Title Insurance?

First, let’s define what a title is.

A title grants you ownership of the property, along with the rights to use it. With a title in-hand, your newly purchased home is officially yours. It’s all rather straightforward, right?

Well, not so fast. The title is connected to the property, not the owner(s). Yes, it’s assigned to you, which grants you ownership, but it reflects the property itself.

Think of it like your property’s birth certificate, as it were. The title gives you custody over the home, but any previous issues are still independently attached to the property and, as such, are attached to the title. This means that any previously unresolved issues will now fall on the new homeowner(s). That’s you!

Title Insurance (or owner’s insurance) protects you from losing the rights to the home you’ve just purchased. Title Insurance is required before you take out a mortgage, as it also protects the interests of the lender who is providing the mortgage.

What potential title issues are we talking about? Keep reading for key insights into what issues about Title Insurance Massachusetts residents should know.

Examples of title issues

1. Errors in Public Records: With so many parties working to make your home purchase a reality, you may assume that someone would have noticed an error in public records. Yet, home sales can often move quickly, especially in a housing market as hot as this one. A simple clerical error can be costly and time-consuming.
2. Unknown Liens: The previous owner may not have paid their tax bills and may consequently have a lien placed on the home. Remember that these liens follow the title, which is why it’s important to perform due diligence on distressed properties and short sales. An unknown lien is a major reason to get the answers for Title Insurance Massachusetts residents need.
3. Illegal Deeds: It’s vital to perform a title search to ensure that no outstanding “claims” have been made as to the ownership or deed of the property you are seeking to buy.
4. Surprise Heirs: Long-lost relatives may pop up with contested wills during or after the home purchase. This can lead to a messy and drawn-out legal nightmare.
5. Forgeries: This one’s obvious. Unfortunately, the scam may not be as easy to spot. Make sure your titles are double-checked to ensure all documents are legitimate so that you can move forward with a clean title.
6. Undiscovered Encumbrances: If a third-party is holding a claim to all or some of your property, you may have an encumbrance in place. Ask a lawyer and a real estate professional how to discover if this is possible for your new home.

Unknown Easements: This is important to check, as easements grant businesses, local governments, and sometimes neighbors the right to access your property.

Boundary or Survey Dispute: A survey determines the boundaries and perimeters of your property. Verify that previously done surveys accurately reflect current boundaries, so a neighbor or third party cannot claim access to or ownership of the property you are buying.

An Undiscovered Will: Surprises don’t just come in the form of heirs; they can also come in the form of undiscovered documents like wills. This is common when there is a sale managed by the state, wherein no will seemingly exist. Yet, it’s possible that one does exist, which would jeopardize your rights to the property.

Bottom line: Title Insurance is a must!

Buying a home is complicated, and there’s no shortage of snags and potential downfalls that can arise. At MBA Mortgage Company, we do everything in our power to guide you through a straightforward purchase of a home.

If you need answers regarding the best Title Insurance Massachusetts residents can get, we work with trusted partners to provide your home purchase with the protection it needs.

Contact us with any questions you have about Title Insurance and how you can move into a new property worry-free.