One of the most important parts of buying a home is getting Title Insurance. If you're new to the real estate world, you may not know what that means. Title insurance protects your financial interests against any defects in the property's deed or any liens that may have been placed on it unjustly or accidentally. It also protects you from any mistakes made by previous owners, so long as they occurred before your purchase date. For example, if someone thought they were signing over their deed to sell their house to one person but actually sold it to another without realizing it, this would be covered by title insurance under some circumstances. Obtaining Title Insurance will protect you and ensure a smooth process when buying your title. This insurance will protect you against title disputes when the title is in dispute for any reason.
Let's say you buy a piece of property, and soon after it turns out that someone else also had a claim to the land in dispute. If left unresolved, the issue could cause serious legal troubles for both parties involved in the sale if they don't get it sorted out before an issue arises. That said, yes I suppose we could just trust everyone we meet on the street and assume that they're not trying to scam us or rip us off - but I doubt most people feel that way! For this reason, many potential buyers and sellers alike turn to Title Companies.
