Title insurance is considered a standard part of most real estate transactions, despite it technically not being mandatory for most real estate deals in New York. However, not everyone understands what it is, despite the essential role it plays in protecting buyers and sellers from potential legal problems. So why do you need title insurance for your real estate transaction, and what might happen if you do not have it?
What is Title Insurance?
Title insurance is a type of insurance policy that can be bought by people looking to buy or sell real estate. In essence, it protects people by covering the legal and financial costs that arise from any previously unknown title defect. Like any other insurance policy, they are typically issued by a licensed insurer, who provides protection similar to other types of insurance companies.
Why Should You Get Title Insurance?
It is critical for protecting yourself from legal and financial liability that may arise during your transaction. In this way, they can avoid costly litigation that can arise from a dispute over one of these defects. Some potential defects include unpaid mortgages or liens, undisclosed easements or covenants, or fraudulent or forged documentation.
What Happens if You Do Not Have Title Insurance?
If you do not have title insurance, there is a chance that you will find yourself facing a legal claim related to a previously undisclosed title issue. In order to resolve this claim, you might need to get involved in long and costly litigation. Worse still, it could endanger the legitimacy of the transaction itself, potentially bringing into question the ownership of the property.
What Should You Do?
If you intend to buy or sell a home, you should make sure to get a title insurance policy. To facilitate that process, you should speak to a lawyer with experience handling real estate transactions. They can guide you through every step of the process of buying or selling real estate, and ensure you are protected in the event of a previously unknown title defect.
For more than 50 years, the New York lawyers at Elovich and Adell have represented clients like you in real estate cases. Our attorneys, conveniently located in Long Beach, handle personal injury, real estate, commercial transactions, criminal defense, and labor and employment claims all across New York State. For a consultation, please call us at 516-432-6263 or visit our contact page for more information.
