WHAT IS A TITLE INSURANCE POLICY? SAFEGUARDING HOME BUYERS
A Title Insurance Policy acts as an additional layer of protection, safeguarding homeowners against a range of potential legal issues that may arise during the course of ownership. These may include legal claims against the property, various forms of fraud, boundary disputes, hidden legal defects, or even clerical errors in public records.
According to our more than 45 years of experience as real estate agents and lawyers specialised in property and urban planning matters, over 20% of real estate transactions in Altea and other areas of the Costa Blanca involve, to a greater or lesser extent, title-related issues that must be resolved prior to completion. This percentage increases significantly in the case of villas (more than 35% present issues), and even further in properties built on rustic land.
Do Real Estate Agencies Carry Out Legal Checks?
Real estate agents should conduct a proper legal and urban planning review of the properties they market. However, the reality —unfortunately— is that many intermediaries and agents in Altea and across the Costa Blanca do not carry out adequate due diligence before offering properties for sale, or simply lack the expertise to do so. Even more concerning is that they are often unable to resolve issues that can later become serious problems for both sellers and buyers.
Is It Necessary to Hire a Lawyer to Buy Property in Spain?
Lawyers specialised in real estate play a critical role in reviewing properties that their clients intend to buy or sell. Their involvement typically prevents unpleasant surprises for both property owners and prospective buyers.
Although Spanish law does not require the involvement of a lawyer in property transactions, at ALTEAINVEST we strongly recommend that buyers consult a specialised real estate lawyer before signing any document or making any payment, particularly if the agent offering the property does not have a solid legal background.
Why Do I Need a Title Insurance Policy?
While a qualified real estate and urban planning lawyer can identify and, in most cases, resolve the majority of issues to facilitate a smooth and secure transfer of ownership, no one is entirely free from risks that even the most diligent professionals cannot foresee or prevent.
These risks may affect ownership rights and lead to significant financial losses and concern before they can be resolved.
A well-structured Title Insurance Policy guarantees that your legal rights, as stated in the title deed, will be protected in the future, and that the property you have acquired meets all required legal conditions.
How Can ALTEAINVEST Help Protect Your Property?
At ALTEAINVEST, our primary objective is to provide maximum peace of mind and long-term security to buyers of villas and apartments in Altea and throughout the Costa Blanca.
For this reason, we provide all buyers —as part of our services and at no additional cost— with a Title Insurance Policy issued by a leading insurance company. This policy offers 20 years of protection against potential future issues such as:
Boundary disputes (e.g. a neighbour claiming part of your land)
Future demolition orders
Various types of fraud (such as identity theft leading to the fraudulent sale of your property)
Disputes within a Community of Owners affecting your rights
When you purchase a property through ALTEAINVEST, your investment is protected for 20 years, a level of security rarely offered by other real estate agencies in Altea or across the Costa Blanca.
How Does a Title Insurance Policy Protect You?
In the event that any issue covered by the policy arises, the insurance company will appoint specialists in Spanish real estate law to manage the matter with the highest standards of diligence and efficiency.
If the issue cannot be resolved within six months, you will be financially compensated.
The policy provides complete peace of mind: should the unexpected occur, the insurance company will be there. Should a claim be made, there are no deductions, as the policy covers legal costs, lawyers’ fees, and all expenses associated with defending your ownership rights.
Without the Title Insurance Policy provided by ALTEAINVEST, homeowners would need to resolve such issues themselves, bearing the time, stress and legal costs involved.
Benefits for Property Sellers
Property owners may also benefit from offering a Title Insurance Policy to buyers through ALTEAINVEST, making their property more attractive and facilitating the sale.
Key advantages include:
Providing additional assurance that the property has a clear title and all issues have been resolved before the home sale
Reducing legal risk by protecting the seller from potential future legal claims against the property after the sale
Inmproving the marketability of the home and accelerating the closing process by increasing buyer confidence
Avoiding delays due to disputes
Frequently Asked Questions
- Will all issues be detected during due diligence?
Not necessarily. Even a thorough due diligence process prior to a home sale does not always uncover every issue, particularly in cases involving fraud or unnoticed clerical errors. Title insurance protects buyers against problems that may arise years after completion.
- Is Title Insurance expensive?
While due diligence (including title insurance) represents an additional cost when selling or buying a property, prudent buyers recognise that it is a small price to pay for long-term protection. Without the title insurance policy, homeowners could face significant expenses —potentially tens of thousands of euros— to resolve future title claims.
- Is Title Insurance the same as Home Insurance?
No. These are two entirely different types of protection for homeowners:
Home insurance covers physical damage (fire, theft, etc.)
Title insurance protects ownership rights (fraud, boundary disputes, legal defects, etc)
- Who pays for Title Insurance?
As Title Insurance is not mandatory in Spain, its cost can be negotiated between buyer and seller.
At ALTEAINVEST:
If a seller entrusts us with the sale of his/her property, we cover the cost of the Title Insurance Policy as part of our service
If a buyer instructs us to carry out due diligence, we also assume the cost of the Title Insurance Policy even he/she buys directly from the owner or through another estate agent
- Is Title Insurance necessary for new-build properties?
Yes. Even newly built properties may present issues such as hidden easements, documentation errors, or even fraud.
- Do all real estate agencies in Altea offer Title Insurance?
No. Most agencies do not offer this protection. Buyers are therefore strongly encouraged to compare not only properties, but also the level of services and guarantees provided.
In addition to title insurance, ALTEAINVEST holds professional liability insurance up to €3,000,000, offering an extra layer of protection.
- Does Title Insurance only protect you before completion?
No. Although it is paid as a one-time premium, it provides coverage for up to 20 years, protecting the owner long after the purchase has been completed. So, if an issue pops up years after closing, the title insurance will still protect the owner.
Ensuring Secure Transactions and Protecting Your Investment into the future
Buying a property is one of the most important financial decisions you will ever make. Do not take unnecessary risks.
A Title Insurance Policy protects buyers against potential legal issues that may arise after completion. Sometimes problems could surface many years later.
At ALTEAINVEST, we offer something unique: a fully protected purchase, backed by legal expertise and a 20-year Title Insurance Policy.
When buying a property on the Costa Blanca, always ask the seller or their agent to provide you with the Title Insurance Policy.
If they cannot, contact ALTEAINVEST. We will review your case and help you secure the appropriate title insurance overage, ensuring your ownership rights are fully protected and helping you avoid costly legal disputes in the future if disputes ever arise.
