Buying a home in Greater St. Louis is one of the most significant investments you’ll ever make. As one of the largest metropolitan areas in the country, our real estate properties are highly sought after, and the laws that govern them are extremely specific. As you navigate the excitement and legal hurdles of the home-buying process, there’s one important element you need to fully understand.
Title insurance is often an overlooked part of real estate law that can protect both you and your lender from issues with the property’s title. These issues usually arise after the purchase is made, so it’s important to know how to protect your investment right from the start. Our team at Wallach & Associates, P.C. has compiled this informative article to help you understand how title insurance works in Missouri, and why it’s such a vital component in our real estate laws.
If you’re considering a purchase of business or residential real estate in Greater St. Louis or the surrounding areas, our offices in St. Louis, Chesterfield, and Maryland Heights are ready to help.
Why Title Insurance Matters
Title insurance is designed to protect you from any issues with the property’s title that might not be immediately obvious. These could include things like unpaid property taxes, undisclosed heirs, or mistakes in the public records. In St. Louis, where property transactions are a significant investment, having title insurance can save you from financial headaches and hassles down the road.
The Benefits of Title Insurance for Buyers and Lenders
Title insurance benefits both buyers and lenders in major real estate deals. For buyers, it ensures that the property you’re buying is truly yours and that no one else has a valid claim to it. It’s an insurance policy that covers legal fees and other costs if a dispute ever arises regarding the ownership of your home.
For lenders, title insurance is a way to protect their investment in you and the mortgage they lend you. If an issue with the title ever comes up, the lender’s title insurance policy will cover their loss up to the amount of the loan. It’s a way to make lenders more comfortable offering mortgages by ensuring they’re covered if something goes wrong.
How Title Insurance Works
First, one of our real estate attorneys will conduct a thorough investigation of the property’s history. This process, known as a title search and examination, is designed to uncover any issues that could affect your ownership. We look for things like unpaid property taxes, undisclosed heirs, and any errors made in the public records.
After completing the title search, the next step is to issue a title commitment. This document outlines any problems we discovered during the search, and specifies what needs to be addressed before an insurance policy can be issued. Once these issues are resolved, the title insurance policy will be issued to the property. The policy protects both you and your lender from future claims against the title. If someone challenges your ownership or if other issues arise with the title, the policy covers legal costs and any other related expenses.
Reliable Protection in Missouri Real Estate
At Wallach & Associates, P.C., we provide comprehensive and reliable legal counsel for real estate deals all across Missouri. Contact our offices in St. Louis, Chesterfield, and Maryland Heights today at (314) 308-2900, and let us protect your investment and guide you every step of the way.
