What A Seller Disclosure Covers & Why You Still Need Title Insurance
As a potential home buyer at the Lake of the Ozarks, there are things you want to know about the property you are looking to purchase. As your number one title insurance company at the Lake of the Ozarks, Arrowhead Title, Inc. would like to use this blog to give you a bit of information on seller disclosure forms, what they cover, and why you should get title insurance for your new Mid Missouri home.
Shortly after you have made an offer on a home, you should receive a document known as a seller disclosure. This is a document that contains all the information that the seller is aware of pertaining to the condition of the property. Read this carefully and have your real estate agent look over it as well.
What is a Seller Disclosure Form?The point of the seller disclosure form is to inform new buyers of exactly what they are getting. Seller disclosure forms are usually in the form of a checklist compiled by the government where sellers can check off if their home has ever had any of the issues that are on that list. Different states have different disclosure laws, however, not all states have the same checklist on their seller disclosure forms. Home problems that could be part of this list would include things such as leaks, flooding, problems with the foundation, mold problems in the home, pest infestations, etc. We still suggest you have a home inspection done prior to purchasing a home.
Why do I Need Title Insurance if I have the Seller Disclosure Form?Most states require the seller disclosure form to list current liens on the property; but again, keep in mind that every state and every county has its own regulations on what a seller must disclose. For example, you may live in a state that requires a seller to disclose that there was a death that occurred in the home, but another state may not require the seller to list that on the form.
As with public records, mistakes do occur. The seller may not be aware of some of the things that have occurred in the home, or how far the home goes back on a will. They may be unaware of the great uncle who suddenly could appear at your doorstep demanding ownership to the property you just purchased. Also, unfortunately, not everyone is honest about the property they are selling.
Title Insurance Covers MoreA seller disclosure form does not cover all that title insurance does. Title insurance protects you as a homeowner against damage from past liens, encumbrances, or title defects. Title insurance protects your ownership of your property. It protects against all claims made in the past that may affect your rights as the owner of your new home.
Hopefully, we have given you some insight into what a seller disclosure form is, and why it is important as you buy a home at the Lake of the Ozarks to research your seller disclosure form. We also hope you understand the importance of getting title insurance to cover your entire investment from past events, not just events that could occur in the future. Our experts at Arrowhead Title, Inc. would love to talk to you about all your title insurance questions and needs!
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