Buying a piece of residential real estate will be one of the biggest transactions of your life. You may spend as much as 30% of your monthly income on your mortgage. Obviously, you want to protect the income that you invest in your home from unnecessary losses.
Purchasing title insurance during your real estate transaction is one of the simplest ways that you protect yourself. Your title policy will help you pay for an attorney if there is a challenge against your ownership. It will also reimburse you for your down payments, accumulated equity and other investments in the property if you lose a title case in court.
Sometimes, a title policy requires a little bit of extra work before the company will underwrite it. Curative work may be necessary to obtain a title policy for your new house.
What does the curative process involve?
Sometimes, unexpected blemishes, liens or names show up on a title during the title search. When there are issues with title or discrepancies between what people reported and what the company found, more research is necessary. After all, the insurance company won’t want to underwrite a policy with a higher-than-average risk of title claim.
The curative process is how title insurance companies investigate and remedy different issues with a title. They may require that people execute quit claim deeds to clarify ownership after a divorce. They may need paperwork showing that the owner already paid a lien.
In some cases, more effort, like quiet title proceedings in court, may be necessary. Learning about what goes into a title policy can help you feel more confident about buying a piece of residential real estate.