Buying or selling a home comes with plenty of excitement—but also a fair share of misinformation. Some real estate myths are so stubborn they could outlast the house itself! These tall tales can confuse buyers and lead sellers astray, but don’t worry—we’re here to set the record straight. Get ready to separate fact from fiction as we bust some of the most common myths about title insurance and show you how to steer clear of costly mistakes.
Myth #1: Title Insurance Only Protects the Lender
Fact: While lender’s title insurance is required to safeguard the lender’s investment, an owner’s title insurance policy is designed specifically to protect you. It ensures your ownership rights are secure and shields you from legal costs if disputes arise. Without it, your financial investment could be at serious risk.
Myth #2: Title Insurance is Too Expensive
Fact: Title insurance offers an important layer of protection for your property rights, and it’s a one-time cost that lasts as long as you own your home. While it can’t prevent every possible issue, it does provide critical coverage for most common risks like title disputes, liens or legal claims. Think of it as an essential safety net that can save you from significant financial and legal headaches down the line. When compared to the potential costs of resolving these issues on your own, title insurance remains a smart and valuable investment.
Myth #3: You Only Need Title Insurance When Buying an Older Home
Fact: Title issues can arise no matter the age of the property. For new homes, issues like contractor liens or legal disputes during development can impact ownership. For older homes, unresolved past claims may lurk in the property’s history. Regardless of the home’s age, owner’s title insurance ensures you’re protected from unforeseen problems.
Myth #4: Title Searches Always Catch Everything
Fact: Title searches are thorough but not infallible. Occasionally, long-lost heirs, errors in public records or even forgery can surface after the deal is done. Owner’s title insurance acts as a safety net, protecting you from these hidden risks that a title search might not uncover.
Myth #5: Title Insurance Isn’t Necessary If You Pay Cash
Fact: Paying for a home in cash doesn’t eliminate title risks. Issues like undisclosed liens, boundary disputes or prior claims can still arise and threaten your ownership. Without owner’s title insurance, you’d be solely responsible for these costly problems.
How Continental Title Can Help
We know tile insurance can feel confusing, but we’re here to help. Our experts work closely with REALTORS®, lenders and consumers to ensure every title is thoroughly researched, and we offer owner’s title insurance to give you peace of mind. Buying a home should be an exciting milestone, not a cause for stress. Partner with Continental Title for a smooth, secure closing process, and rest easy knowing your investment is protected. Contact us today to learn more about how we can safeguard your future.