The Sewing Mom

I wrote a post about title insurance companies yesterday and I received several emails asking for more information. I feel it’s pretty important as a home buyer to know what you are getting, not just in the house, but in the land it sits on.

A title company is responsible for ensuring there are no outstanding liens on the property. You wouldn’t want to purchase a home and find out later that the company that installed the swimming pool is holding a lien against it. If that were the case, you’d become responsible for paying off that lien. Having a title insurance company prepare and issue a title insurance policy on the property gives a property owner piece of mind. The policy gives a history of the property and any liens that have been made against it and what rights or easements anyone else may have. For example, on our home in Houston, our title insurance policy stated something to the affect that if oil were to be found under ground, the oil rights would belong to a specific utility company.

The title policy on our current house shows me who, specifically, had liens or ownership rights to the land in the past. The policy also provides dates of when those rights were relinquished. I always pay the extra money when purchasing a home, not only to to have a title policy, but to have a copy of the actual title insurance policy in my possession. I think it’s very important as a home owner to know what my legal rights are regarding the property.

So, I hope I’ve not been repetitive, but I think it’s an important issue that any home buyer needs to be aware of.