Investing in any real estate property can be a tricky affair. Whenever there is a transaction between two parties, there is always some risk of fraudulent activity. Especially in the case of real estate transactions, it is challenging to maintain a deal’s authenticity. For instance, New Jersey has been deemed one of the ten states where real estate frauds occur.
New Jersey has become the seller’s market in the past few years, making it suitable for those looking to sell a house. The demand for a home is more, and the supply is less, which means that the sellers can demand higher prices. Consequently, the average cost in New Jersey has increased by $100,000 in the last couple of years.
It is best to get involved in the deal after safeguarding your financial interest. That is why it is better to hire an NJ title insurance company to help you in facilitating the transaction. The title company’s insurance will safeguard you as the buyer, but it is also a security net for the lender.
If you are unsure about whether you must hire a real estate title agency or not, here are some of the top reasons why you must.
Helps in the title search
Before investing in any property, it is critical to check its history when it was built or bought. Acquiring the home’s history is vital before purchasing the house and securing a loan from the lender. And having a complete history will make it easier for you to sell the house in the future.
When you hire a company, they will be able to find all the necessary records because they have ample experience and connections in the field to get the job done. By having the property’s history in their possession, they can look for any red flags and indicate them. Therefore, a title insurance company’s role is to ascertain that the person selling the house has the right to do so. Moreover, by searching for the title, they can find pending taxes, easements, leases, lien, etc.
Breach of contract
When you buy any property, there are often breaches in the original contract. Sometimes the breaches are minor and overlooked, while others can lead to severe consequences.
When both the parties agree to make a deal, an initial sale contract is formed, mentioning the responsibilities of both the parties. If there is a contract violation by either party, a title company may help you decide the further course of action. Besides, if you want to prosecute the other party, the title company will help you.
Provides title insurance
In New Jersey, having title insurance is not required by the law, but any person with experience in the industry will advise you to get one.
A title company will research on your behalf, check the title history, deeds, liens, and other outstanding on the title, and give you the go-ahead to make the deal.
They also provide an insurance title that safeguards you from any liabilities that might pop up in the future. So, if there are any dues on the title, the title insurance will cover them and protect your financial interests.
So, these are the primary three reasons you must hire an NJ title insurance company. A title agency protects you from title fraud and provides insurance that makes it easier to secure a loan from the lender.
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