There are some instances in the US that you can encounter with some irregularity in their construction, that is, they have some structure that goes outside the legal system, or that was done without a license. This to start doing works without asking permission is very rare in the US.  We are talking, among other things, of your liability, the responsibility that the title insurance probably does not take care of if the accident is caused by an irregularity (for example, a structure without a license or permits that falls apart and causes damage to a neighbor). We do not talk about fines and sanctions.

title insurance

What we are going to talk about now is the question of what will happen on that day you want to sell that home then there your buyer will face a big problem in the future because of these irregularities he didn’t even know. Further, this is not just talking about just paying a fine or paying a project to an architect, but it is more than that. This is to entirely modify the work. This refers to a very serious matter, and this is as equivalent to demolition.  That"s where the property title insurance comes in, which is the topic that concerns those who encounters a headache.

Title insurance defined

Title insurance guarantees the will of the buyer of a home in the terms established in the deed of sale. Therefore, any fraud before or after that purchase or any legal problem associated with the sale is covered by insurance. With this contract, the insurer is subrogated in the legal actions that could be undertaken by the insured against the causes of the damage.

In other words, property title insurance is insurance to avoid real estate fraud. But it does not only cover second-hand homes that do not have a building or extension license or that do not have a first occupation license or certificate of use and occupancy, easements, charges and encumbrances that involve costs, assignments or renunciations, as well as urban conflicts with impact on housing, among other problems.

If it is a house under construction, the insurance guarantees that the property has the stipulations relating to the housing area, parking spaces, storage rooms, etc. In addition to covering demolition expenses and penalties, property title insurance includes the costs of preparing a legalization project, legal defense, and compensation for depreciation or to guarantee the use of title deeds. You can look for a real estate attorney to assist you with the issue or any real estate closing services since this is their specialization. Before finally buying a house, it’s good to consult first an expert on this matter.

Do they prescribe works without a license?

There is good and bad news with this. The good news for those who have done works without a license in their home is that they prescribe at four years from the date of completion of the work. If at that time the town hall or a private individual has not formally denounced the job, they can no longer do so. The bad news is that said date must be demonstrated by the owner. And to see how you explain this, because normally when you do work illegally, there are no bills or anything because who does not pay for licenses, permits and projects probably do not even pay tax. In any case, any professional (tax charged or not, we already know how this is going) at least make sure to ask for the work license, for the account that you have. And if the work has been done by him, I do not even tell you anymore.

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