Facts About Title Insurance - 3 Myths and Misconceptions Debunked

Title insurance can be a bit confusing for those who are not in the real estate industry, and there are a lot of misconceptions people have about it.  Understanding exactly what it is, how it works, and whether you need it is important when you are doing a real estate closing at the Lake of the Ozarks.  Your property ownership rights may depend on it. At Arrowhead Title, we have a philosophy that focuses on clarity, communication, and educating our clients.  We have been providing title services at the Lake of the Ozarks since 1984 and we know that it is not worth taking any chances when it comes to your real estate closing.  So today, we want to clear up some of the common myths and misconceptions surrounding title insurance.

Myth #1 - If I am building a new home, I don’t need a title search or title insurance.

Imagine investing all the money to build a new home just to find out the person who owned the land did not have the right to sell it to you because of an unknown heir.  There may be encumbrances, restrictions, or easements that could make your new build impossible or limit your use of the land.  You could even face an unknown mechanic’s lien during the construction of your home that could threaten your property rights.  For all these reasons and more, you should not consider buying a lot for a new build without first getting a title search and title insurance.


Myth #2 - If I am not required to get owner’s insurance it must not be that important.

If you are financing your home, your lender will require you to purchase a lender’s title insurance policy to ensure their ownership rights to your property should you default on your loan.  Many buyers think that policy will protect their ownership rights as well, but that is not the case.  In order to protect your property ownership rights as a buyer, you must purchase an owner’s title insurance policy too.  While it can seem like an extra expense to an already costly process, if the bank won’t loan you the money without being protected, it makes sense that you shouldn’t borrow the money without protecting yourself.

Myth #3 - My title search came back clean, so I don’t need to get title insurance.

Our title agents at the Lake of the Ozarks are experts at doing title searches.  Unfortunately, there can be title defects that are not discoverable in public records.  These defects could include missing heirs, forgeries, fraud, and more.  Doing a thorough title search will certainly reduce your risk, but only a title insurance policy will protect your property ownership if an unknown problem surfaces after you have purchased the property.

As an experienced title company at the Lake of the Ozarks, everything we do is about risk elimination and looking out for our clients when they buy a house at the Lake of the Ozarks.  We don’t want anyone to suffer the consequences of not having the right title insurance policy in place if a title defect arises after they have closed.  When you are ready to buy the home of your dreams at the lake, you can rely on Arrowhead Title in Lake Ozark to keep you informed and ensure that you have the right policies in place to protect your rights for as long as you or your heirs own the property!  For any real estate closing needs, feel free to reach out to us.  Don’t forget to follow us on social media using the channels below for more information about real estate at the Lake of the Ozarks!  

The Lake of the Ozarks' Most Trusted Title Company

Where Accuracy Matters!


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