When you purchase Utah real estate, a title company takes a look at past ownership of that property to ensure previous transactions were completed without any disputes. But is that all you get with title insurance? No. There's a lot more to consider.
Title insurance claims can still happen, even with modern real estate records in courthouses. These disputes could be problems like:
- Some properties weren't transferred for hundreds of years. No prior modern title searches have been recorded. All past ownership rights might not be known, but they can come to light after a transfer.
- Even with a modern title system in place, some owners don't report their spouses or children. These people could be discovered after a transfer.
- Property line disputes are a really common, and they can cause serious problems between neighbors.
- Lenders have to make sure they have insurance to pay for losses due to a loss of first lien status.
- As properties transfer and title insurance policies are issued, another transfer could rely on the previous title insurer. Title history will have to be updated through to the very last owner.
Ensuring that you own a clear title to your property, and relying on having a marketable title if you sell, are both very valuable. Additionally, with our title and escrow service, you can get a smoother closing when refinancing.
