Maybe you just moved into your new home a little over a year ago when someone shows up and claims to have a partial ownership interest. Perhaps you have already owned the property for years. Title claims could be the result of mistakes during estate administration, fraud, problems with property transfers after divorce or unrecorded liens. The party making a claim against the property puts your ownership at risk.
You may have invested thousands of dollars in your down payment and mortgage and even more toward maintenance and repairs at your home. You obviously worry about losing the money that you have invested in your property. How will your title insurance policy protect you as you try to resolve this title dispute?
It will pay for your legal representation
Going to court to resolve a title dispute can take many hours of court time. It could empty your savings just the retain the representation you need, especially if you recently closed on the home. Your title insurance policy will cover the cost of having an attorney argue your side of the situation in civil court.
It can compensate you if the other party prevails
If your title dispute ends up going to civil court, you likely hope to prove that you are the owner and that the claimant doesn’t have a valid ownership interest in the property anymore. If you are unsuccessful, the other party may take ownership and possession of the home where you currently live. In that difficult scenario, you could at least count on title insurance to compensate you for your lost financial investment in the property.
Making use of the protection available to you, including your title insurance policy will help you better settle a title dispute.