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Posted on April 12, 2022
Why Is Title Insurance Necessary in New Jersey?
When you buy a new home, a plot of land, or any other property, there is always the possibility that you will face risks related to mistakes made by the previous owner. The previous owner of your home, for example, may have failed to pay property taxes.
Claims may also arise as a result of encumbrances, such as contractors claiming they were not paid for work done on the home before you bought it, or as a result of a forged will or another legal document. New Jersey title insurance company explains all closing documents in an easy-to-understand manner.
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This is why title insurance differs from other types of insurance in that it protects you against past claims rather than future claims. Title insurance is based on the concept of "loss prevention": the idea that time and money should be spent primarily to prevent title issues from occurring in the first place.
Do You Need Title Insurance On Land?
The answer to this question is yes. Regardless of what is on your property, you should unquestionably purchase title insurance. Furthermore, keep in mind that a deed merely grants new individual ownership of a property and does not necessarily terminate the ownership rights of previous owners.
Before you buy land, you should also understand how it is zoned. This entails more than simply learning the land's zoning designation (i.e. "residential" or "commercial"); it is strongly advised that you also learn about any restrictions that may apply to the land.