Buying a home or commercial property can feel exciting and stressful at the same time. You want everything to go smoothly so you can focus on settling into your new space. Title insurance plays a big role in protecting you from unexpected problems that could threaten your ownership.
What is title insurance?
Title insurance protects you from hidden issues with the property’s ownership history. Problems like unpaid taxes, old liens, or even errors in public records can come up after you buy. Without title insurance, you could end up paying expensive legal fees to defend your ownership. Title insurance steps in to cover those costs and losses.
Common title problems you might face
When you buy a property in Kentucky, several issues can sneak up on you if you are not careful. For example, a previous owner’s unpaid mortgage or tax debt can create a lien on the property. Boundary disputes could also cause trouble if neighboring property lines are unclear. Clerical mistakes in deeds or fraud by a past seller could even mean you don’t have clear ownership. Title insurance helps protect you against these risks.
Why title insurance matters in Kentucky
Kentucky operates under a “race-notice” recording system. This means the first party to record a deed usually wins ownership if disputes arise. But if someone sells the same property twice or if a defect goes unnoticed, you might face a serious legal battle. Title insurance provides peace of mind by covering legal defense costs and safeguarding your investment.
How to secure your ownership
Before closing on a property, a title company conducts a thorough search of public records. However, even the best search might miss something. Title insurance adds a layer of protection that stays with you as long as you own the property. It covers unknown claims, helping you avoid unexpected financial burdens.