You may know that you need title insurance for your home, but you may not think you need it for land without a structure on it. In actuality, title insurance is necessary for all sorts of property, including vacant land.
Title insurance does not simply cover problems relating to a home that could be overlooked. A title search is also not restricted to a building or a home. For this reason, it’s important to invest in title insurance when purchasing vacant land or empty lots.
Why is Title Insurance Necessary?
When purchasing a home or any sort of property, you are also purchasing its baggage. Even if it’s an empty lot, the previous owner gained rights to different legal and physical aspects of the property. This provides plenty of opportunity for future legal trouble.
A title search can reveal a whole set of problems, including unpaid taxes or unpaid mortgages. The owner may not have disclosed a marriage; this can open up a legal claim by the spouse, which could force you into a custody battle of your property. There is even the possibility of forged legal documentation, which could get you into trouble when the property is signed under your name.
Do You Really Need Title Insurance for your Vacant Land?
The answer is yes. You absolutely need to search for a title insurance policy, regardless of what is on your land. A deed merely signs over ownership to the new property owner, but this does not sever the rights to the property of previous owners.
Even if the land is empty, there could still be hidden problems regarding taxes, rent, legal documents, and more. Your title insurance company will take care of the searching, and will find any problems regarding the property’s history.
What Type of Title Insurance Do You Need?
The type of insurance that the owner will need is called owner’s title insurance, and it is very different from lender’s title insurance. A lender may use title insurance to protect itself should it choose to provide a loan towards a property.
Owner’s title insurance, which is what you’re interested in, protects the future owner from any mishaps. This insurance is purchased only once at the start of your ownership of the property, and lasts as long as you or your heirs are in ownership of it.
It can protect your property for generations to come, so you won’t have to worry about renewing it or having any issues far in the future. It also has the benefit of being a one-time fee, rather than recurring payments, so you don’t have to think about it once you’ve paid.
Armour Settlement Services is Here to Help You With Vacant Lots.
Before you gain full rights to vacant land, you need to conduct a title search with a title insurance company. This way, you can ensure that you won’t get into any legal danger should you run into trouble. Armour Title Company can find you the most effective insurance plan, today!