Why Buying Title Insurance is A Smart Decision
Bahamas Real Estate - With the changing global financial environment and the advancements in technology Bahamas Luxury Real Estate recognizes the sale of real estate even in an island paradise like the Bahamas can sometime get complicated which is why Bahamas Luxury Real Estate thinks buying Title Insurance is a smart decision when buying Bahamas real estate.
You see previously while international luxury real estate developers and investors always bought Title Insurance. Most other Bahamas real estate buyers relied almost exclusively on their lawyers to do a thorough title search and provide an opinion on a property’s good and marketable title. And in most instances this was enough with the lawyers indemnity insurance, to go ahead with a purchase.
But as you may know title opinions are never 100 percent fail proof and there is always the possibility of challenges to any property title materializing and endangering your right of ownership. As there are any number of title defects that are possible from fraud or forgery of documents, unreleased mortgages, restrictions on use of the property, clerical errors, undisclosed judgments against a property owner, undisclosed heirs or undiscovered wills. And the list goes on…
This coupled with the fact that the Bahamas has an unregistered land system making it easier for documents to be overlooked or not properly recorder is why Bahamas Luxury Real Estate feels buying Title Insurance is a smart decision.
Reasons to buy title insurance when you buy a home
And what is Title Insurance?
Title insurance is a single premium insurance policy that can be purchased by either the buyer or seller of Bahamas real estate to indemnify the insured against any property title defects or encumbrances, that may arise after the sale or purchase of a property causing loss.
And if you happen to be the buyer you are protected in two ways by your Title Insurance policy:
1. The insurance policy will cover the cost associated with defending any legal action that arise out of the claim.
2. The policy will reimburse up to the face value of the policy if the claim against the property is valid.
So how does a seller benefits form Title Insurance?
Well it makes closing the sale on a Bahamas luxury real estate that much easier when you can provide this added comfort to your buyer.
A comfort that not only Bahamas real estate buyers are looking for but lenders as well. As some are requiring that you have Title Insurance before finalizing most mortgage to protect itself against potential investment loss.
While Title Insurance should not be used to replace to the services of your lawyer it is certainly a smart decision to have title insurance when buying Bahamas real estate.