Why do we need Title Insurance?

Title insurance exists to protect the investment made by homeowners in their real property, which is typically a family or an individual’s most valuable asset. When you purchase a piece of real property, you will find that the owner, the owner’s family, and the owner’s heirs may all have rights or claims to that piece of property. There may be other entities with an interest in the property as well, such as building contractors, lenders, judgment creditors, taxing authorities (like the IRS), or various other individuals or corporations. The real property that you are purchasing may be sold to you without knowledge that one or more of these parties has a right or claim to that property. These rights and claims remain attached to the title on the property until they are extinguished. But sometimes, they don’t come to light until after the date of purchase by an unsuspecting homebuyer.