Purchasing a home is not only an essential step on the path to realizing the American dream, but also one of the most important financial decisions an individual will ever make. After all, a home is much more than a place to rest one’s head and store belongings; it is also a source of security and an investment in an individual’s financial future.
When faced with making important financial decisions, individuals naturally seek out a variety of safeguards to protect their investments. When purchasing a home, whether it is for personal use or investment purposes, title insurance plays a critical part in protecting one’s interests by shielding the investment from a variety of unknown issues that could affect their bottom line. Bankrate.com further discusses the importance of title insurance:
“Title insurance is really a two-part transaction. First, the company or attorney searches property records to ensure that there haven’t been any clerical errors, mistakes in examining records, undisclosed heirs, omissions in deeds, unknown liens or fraud involving the deed,” says Jeremy Yohe, spokesman for the Washington, D.C.-based American Land Title Association. “It verifies that the seller really owns the property and is free to sell it.”
“One out of every three searches reveals a title or public record defect that’s fixed before the transaction closes,” Yohe says.
“Next, the entity doing the search contracts with an underwriting company to issue an insurance policy that will pay to defend you in court if anyone challenges your title and to compensate you for your equity if you lose. Homebuyers typically need two policies: an owner’s policy which protects them, and a lender’s policy, which safeguards the lender.”
This system ensures that both the buyer and the lender have guaranteed protection from potential title disputes and legal costs should any issues arise after the purchase has been completed. Selecting a qualified title company in Houston, Texas is critical as it is a consumer’s first line of defense in protecting one’s interests in the purchase of a home within the city.
A study by the New York Times regarding the susceptibility of U.S. cities to natural disasters indicates that Houston is fourth amongst U.S. cities with a high risk of experiencing hurricanes, tornadoes, floods, and the like. Each year damages caused by these weather anomalies force homeowners to repair their homes. What consumers don’t know is these same homeowners will attempt to sell their properties along with the outstanding debt they still owe to the contractors. For potential buyers, a reliable Houston title company would mean the difference between purchasing a new home and entering a legal nightmare.
Although there are many title companies that may offer the consumer protection against legal hassles and prevent obstructions that could interfere with the purchase of a home, it is critical that a home buyer or investor find a title company, like Riverway Title, that has an outstanding reputation, an impeccable record amongst clients and has extensive experience with residential and commercial title insurance.