In the last decade since the economy has been recovering from the great recession, many people in Illinois have been buying and selling homes as their personal financial situations also rebound and maybe even improve. While it is not uncommon to buy or sell a home, that does not mean consumers should not take the process seriously. Without the right steps being taken, a buyer could end up with a serious problem on their hands.
The need for title insurance is one thing that should not be overlooked or considered unimportant. As explained by Zillow, during the escrow process of a real estate transaction, a title company will conduct a thorough review of the property’s title history. This is intended to confirm that the person selling the home actually has the legal right to do so and that the person buying the home will have full ownership and legal rights to the property upon close of the sale.
During the process, any encroachments such as easements will also be identified and documented. In the ideal world, a title company is successfully able to confirm that a title is clear and hand over full ownership to the buyer.
In the event that something was not discovered or disclosed during the title review process, however, title insurance may protect both buyers and their mortgage holders from financial losses if another legal owner eventually surfaces. According to Smart Asset, there are two types of title insurance policies, one intended for the property owner and one for the bank or lender.