Title Insurance

Title insurance is far from the most exciting part about buying real estate in Ocean City or the surrounding areas, but it is an important item to consider.  Your coastal home is likely one of your largest financial assets and it should be protected from the ever-growing list of bad actors that exist in the world.

Title insurance is an insured statement of ownership rights to a specific piece of real estate.  The title insurance policy describes the specific property that you are purchasing in detail and states what limitations, if any, there are to its ownership and use.

Title insurance policies protect against loss from certain claims on real estate, which are not discovered by title research and an examination of public record information.  Certain hidden risks and potential issues can evade even the most diligent of title searches and may not be uncovered until several years after the property transfer.

Examples of items that could threaten a property's title include forgery, encroachments, easements, recording errors, homeowner's association violations, permit and zoning violations, unfiled liens, previous legal action against the property, adverse possession claims and claims by unknown heirs.  

If a claim is made against your property with a title insurance policy in place the title insurance provider will defend you and your property at their own expense.  The title insurance provider will also bear the cost of settling any valid claims against the property in order to protect your property rights and the property's title.

Title insurance is paid for at closing and there are typically no additional fees associated with it for as long as you or your heirs own the property.  Title insurance costs vary amongst providers, however the typical policy is approximately a half-percent of the purchase price.

Title insurance ultimately provides peace of mind.  It guarantees that the property you are purchasing will always be free of any potential encumbrances on the title.  Title insurance is like most other insurances in that you will likely never need to use it, but it is nice to have if you do.  

If you have any other questions about real estate in Ocean City, Maryland or the surrounding areas, feel free to contact me directly anytime at 443-614-9179 or via email below.


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