What every home seller and buyer in Colorado should know about title insurance

Most home sellers and buyers have been informed that obtaining title insurance will provide them necessary protection over possible title defects; but many remain uncertain about why this is so—or even about what title insurance is. The more you know about title insurance and its pricing, the more confident you’ll be about getting the right policy.

A SELLER’S CONCERN: HOW MUCH DOES IT COST? Title Insurance policy is much more cost effective than the other kinds of insurance you have had to purchase. For a single, one-time-only fee, a title policy remains effective until the property is sold to a new owner—even if that doesn’t occur for decades. The price structure is available on most title companies websites. Some title companies also offer a substantial discount if the policy was issues less than four years earlier.

WHY THE BUYER NEEDS TO PROVIDE TITLE INSURANCE? Any prospective buyer will need evidence that his/her investment in your property is free of title defects. In fact, your contract of sale probably requires it. Title Insurance policy that you provide the buyer is a guarantee that you are selling a clear title to your real estate, unencumbered by any legal attachments that might limit or jeopardize ownership. A larger better known title company reassures your buyer that the title has passed the most careful scrutiny. In addition, it can help your deal close more quickly and easily.

WHY THE BUYER NEEDS TITLE INSURANCE? Without a title insurance policy you may not be fully protected against errors in public records, hidden defects not disclosed by the public records, or mistakes in examination of the title of your new property. As a result, you may be held fully accountable for any prior liens, judgments, or claims brought against your new property. However, your title policy insures that if such an occasion arises, you will be defended free of charge against all covered title claims and paid up to the amount of the policy to settle valid claims. A title insurance policy is backed by vast resources and financial strength, you need never worry that your new property’s history will tarnish your bright future. This an important fact if you are dealing directly with a FSBO or if you are purchasing a foreclosure home in Colorado.

We are always ready to recommend the right title company for your needs, and please contact us if you have any questions.

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