Why You Should Have Title Insurance for Buying Raleigh Rental Homes
If you would like to rent houses in Raleigh, you first need to buy them. Buying homes for rent in Raleigh is more complicated than buying personal property. If you buy a toaster, a television set, or a T-shirt, it is very unlikely that anyone will question your ownership of that item because we have no legal mechanism for recording ownership interests in these items. However, ownership interests in real property are recorded in county courthouses, so people who would dispute your ownership have the ability to produce concrete evidence of their claims. For protection of your interest in your newly purchased property, you need to buy title insurance.
What is title insurance? Title insurance provides you with assurances that you have clear title, and it also indemnifies you against any future claims against your title. Title is the bundle of rights you have in your Raleigh rentals, such as exclusive use, exclusive possession, and the right to conveyance. Title insurers will conduct a thorough examination of the court records to see if you have clear title or if there are any encumbrances on it. These encumbrances may include water rights, mineral rights, hunting rights, easements, liens, leases, and covenants, among others.
Some title defects are not apparent from a search of the records, so you still might be sued to determine the status of your title. Title insurance will compensate you for your losses up to the value of your property. For these services, you will pay a one-time premium, and you might have to pay some additional service fees as well.
For more information about title insurance, please contact our Raleigh rental home managers today.