Guest article on behalf of Ali Farahpour, CEO of FNC Title Services, LLC, and Alexander J. Chaudhry, FNC Title, LLC Legal Counsel

Buying a home can be a rigorous ordeal, particularly for first time buyers. Surely, the last thing you want to be worried about is whether or not the home seller even owns the house, but unfortunately the reality exists that title issues do indeed exist. First, it’s important to know what title insurance is exactly. The purpose of title insurance is to protect a home buyer from any loss that might be due to issues with the title of your property.

It’s not uncommon for a house to change hands multiple times before finally coming into your possession and the land it sits on might have gone through even more. However, it’s unlikely that you’ve had a chance to review this chain of ownership, and somewhere along the way it’s likely that a signature may have been forged or that there exists unpaid real estate taxes. If any legal fees and law suits arise out of these issues, title insurance insures that you’ll be covered.

So is it entirely necessary to purchase title insurance? It certainly is if you need a mortgage. Protection for an amount equal to the loan you’re provided by a mortgage lender is obligatory and protects the company lending. The protection provided by title insurance extends back from the date it is issued, covering the individual from that date back, indefinitely. However, the coverage does not extend into the future, as it ends on the day of issuance. There are certain weaknesses to a standard title insurance policy, including the fact that it doesn’t protect against any false claims that come up once you’ve bought the property. Events such as sub-contractors stating they haven’t been paid, zoning violations committed by the previous owner, or identity theft can all reduce the value of the property, but aren’t covered by the standard title insurance policy. However, a new, expanded policy has been introduced in many states that come with a minor increase in price.

If you’re looking to purchase a new home and are worried about potential unpaid real estate taxes or the like affecting the title of your home, contact FNC Title Services, LLC to speak with Ali Farahpour about purchasing title insurance for your home. Based in Rockville, Maryland, FNC Title is licensed across the nation and has strong ties to mortgage lenders and borrowers. Selling, buying or refinancing a home can be extremely stressful, let FNC Title help you out.