Buying a Condo? – A Few Things You Should Know About Title Insurance

Title errors can turn your condominium purchase dream into a nightmare. The average buyer sees Title Insurance as an add-on, but it's a crucial investment.

For the cost of title insurance, you can virtually eliminate any risk (and cost of that risk) of losing an investment due to a standard title error. 

 1. Title insurance guarantees the property is free of liens and clouds against the title. The previous owner may have had a lien or judgment filed against them for unpaid taxes, work done by a contractor, or condo fees. You might lose the condo and have to pay back the mortgage. Paying for title insurance helps protect against that.

 2. New construction? Title Insurance is still a wise choice.

 While you may be the first owners of the condo, you most likely weren't the land's previous owners. A title policy is the best way to protect against any liens that might exist against formerly unimproved land. An owner's title policy will safeguard against the most common title issues that an owner can face.

3. How much does title insurance cost?

 Title insurance policies will range in price, between $500 to $3,500, depending on the property's value, the provider, the location, and the coverage limits. You also have options in the type of coverage, including avoiding HOA violations. 

4. Only one title insurance policy is paid for at closing. If bought alongside a loan, two title policies(the owner's policy and a policy for the lender) are usually paid for at the closing.  

Homestead Title is a full-service title and escrow company. Since 1934, we have provided our customers with competent, thorough, and professional service. Before each closing, we search public records to clarify legal and financial risks for lenders, realtors, and other stakeholders in the real estate transaction process. Our energetic and capable team of real estate title professionals provide accurate investigations, rapid turnaround time, streamlined paperless delivery, and exceptional customer service. For more information, call us at (504) 581-6427 and let us provide you with a smooth and efficient real estate closing.