.By Christina Kass


Title insurance is a crucial part of buying a home or business property because it protects you from the possibility that previous owners didn’t have the absolute right to transfer the property to you. Thankfully, it’s customary in Michigan for all parties in a real estate transaction to purchase title insurance. The buyer pays for the lender’s protection, while the seller pays for the buyer’s protection. This is a way for the seller to clearly state, “I am selling this house to you with no encumbrances, and I am willing to back it up with a policy of insurance that protects your interest in the title to the property for the entirety of your ownership.” 

Here’s our Top 10 Reasons You Need Title Insurance:

1. The policy protects your right to the full use and enjoyment of the property, without interference of prior ownership claims.

2. Most often the title insurance company also provides the settlement services for closing the transaction and helps clear any issues on the title before the closing.

3. There is only a one-time payment for the title insurance policy paid for at closing that lasts the entirety of your ownership of the property.

4. The policy offers legal defense if anyone should knock on your door with a claim of interest on your property.

5. The policy covers prior attempts of fraud by protecting you from claims by those that may have forged documents prior to your ownership.

6. The policy also covers tax and municipal payments due that were billed previously to your purchase that should have been the seller’s responsibility.

7. Title insurance also protects you against any lawsuits against any parties in the title that may have began before you closed. 

8. If there were mortgages, liens or judgments that did not get discharged properly, those may also be covered by the policy.

9. Unknown heirs often pop up later with claims that they did not get their inheritance and the policy may also provide coverage for you as the new homeowner.

10. Last but definitely not least, title insurance provides you peace of mind that you are protected by a policy that will defend you against title claims. 

Some may think title insurance is not an important purchase, but we have seen buyers that did not receive a policy facing title defects that they then had to defend themselves. Don’t let that happen to you!

Even Abraham Lincoln’s family was forced to move out of their home due to land title issues before title insurance came into existence. Title insurance has been in practice since 1876 to help protect this exact scenario from happening to buyers of properties. At Vanguard Title, we are passionate about helping you close on your transaction and protecting you from any hidden defects.

Visit vgtitle.com or call (248) 751-1000 today for more information today!