Do I Need Owner’s Title Insurance for a Condo?June, 20 2018
Title insurance is just as available for condominium owners or buyers as it is for those who own larger, standalone properties. When you apply for owner’s title insurance for a condominium, a title search will be conducted to check for any defects, liens, or delinquencies tied to the condo by a previous owner – or even the condominium association itself.
The lender’s title policy is unfortunately not enough to fully guarantee protection of your investment. This policy only protects the lender’s interest in your condo, and does so until the loan is paid off.
To protect yourself, your assets, and your investment from the date you close on the condominium to the day you sell, you’ll need an owner’s title policy.
Condo title insurance exists to protect your assets against claims that can arise from any of the following title issues:
- Faulty or forged title
- Document defects challenging the classification of the housing unit as a condominium
- Unpaid encumbrances and assessments
- Any title issues that were not discovered before you closed on the condo
There are plenty of things that could have happened (unbeknownst to you) before you moved into the condo that could resurface and cause major problems if you go without title insurance. Here are a few examples:
- The previous owner could have skipped out on his taxes and there could be a tax lien attached to the property.
- A guest or visitor could have injured themselves inside or outside of the condo and the owner could have refused to acknowledge or respond to the judgment.
- A previous owner could have had work completed on the condo without paying the contractor in full.
- The condo could have been jointly owned and unfairly sold by one of the parties without the other’s knowledge.
A good thing to keep in mind is that most of the time, the seller and not you, the buyer, pays for the title insurance. This alone should make getting or requesting owner’s title insurance a no-brainer!
Not sure how to get started? A professional condo title company can assist you in acquiring title insurance for your new condominium. Armour Title Company is America’s title company for homeowners, realtors, and lenders.
We have title management staff available 24/7 to assist you with any and all of you condo title needs. Contact us and get your free quote for condo title insurance today!
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