Why is transferring title to real estate so unique?
Unlike buying a car or television, land title is permanent. While the function of most other forms of insurance is to protect you against losses arising out of unforeseen future events, the primary purpose of title insurance is to eliminate risks and prevent losses caused by defects in title arising out of past events. You need to know the marital status of the seller and whether there are lawsuits or judgments against a former owner. Various rights may have been acquired by others even if the land has never been built upon (e.g. mineral, air or utility rights). It is necessary to determine what rights are outstanding in order to transfer a clear title to a piece of real estate.
Related Questions
- Why is transferring the title to real estate different from transferring the title to others items, such as a car?
- How does transferring title to real estate differ from transferring title to personal property, such as a car?
- Why is transfering real estate differ from transferring the title to personal property, such as a car?
