Why Title Insurance Is Important In Your Real Estate Transaction

 Posted on February 12, 2025 in Real Estate Transactions

With all the excitement that comes with purchasing a new home, it is important to protect that investment,  and a key way to do this is by purchasing title insurance. When you purchase a property, the seller will transfer the title to you. Title refers to your legal ownership right to the property and the title should be "free and clear" of any issues. To ensure it is, title insurance can protect your ownership rights against any defects in title. A qualified Illinois real estate attorney can assist you with the process of getting title insurance. 

What Is Title Insurance?

During a home purchase, a title company will run a search of the property’s title history to ensure that there are no issues such as unsolved liens, undisclosed easements giving access to the property, errors in the public records, fraudulent ownership claims, or undisclosed heirs. Yet even after a title search is complete, issues may come up in the future. Title insurance  provides you with legal and financial protections in the event there are defects in title. 

How Does Title Insurance Protect Buyers and Sellers?

Buyers

For buyers, title insurance ensures that the property has a free and clear title and that, if any issues are discovered later on, the buyer and their ownership rights are protected. If a title issue is discovered, title insurance provides the owner with legal and financial assistance to resolve the dispute.

Sellers

Title insurance helps sellers avoid delays with closing because it addresses any issues with title before the closing. It also communicates to prospective buyers that title has been checked in the past and is unlikely to have inconsistencies, which can increase a buyer’s interest.

How Does Experience Title Insurance Assistance Add to the Real Estate Process?

Experienced title insurance providers will work to minimize or avoid any issues with title throughout the process. Before the transaction, the title insurance company will conduct a title search and identify any potential title defects, minimizing issues down the road. During the transaction, the title insurance company will provide experienced guidance and offer solutions if any title issues come up. After the transaction, the title insurance will protect the buyer if legal and financial arise.

Call a Kendall County, IL Real Estate Attorney 

With a significant investment made in the purchase of a home comes the importance of protecting that interest. An experienced Yorkville, IL real estate attorney can advise you on the reasons why title insurance is important for the real estate sales process. Call Gateville Law Firm at 630-780-1034 for a free consultation.