What is Title Insurance?

There are two kinds of title insurance policies: Lender’s and Owner’s.

Banks will require that a Lender’s title policy be prepared on their behalf.  A lender wants to be sure that their interest in the property is protected.  If you take out a mortgage loan when you buy or refinance your property, your lender will require a loan policy of title insurance. This protects the lender’s interest in your property until your loan is paid off or refinanced.

A buyer should purchase their own Owner’s title policy. It is highly recommended that you purchase a title insurance policy for yourself when you purchase your home. Purchasing an Owner’s policy costs a one-time fee that will be fully disclosed to you by our office.

Even the most skilled title professionals may not find all problems associated with a property. Some risks, such as title issues due to filing errors, forgeries, or undisclosed heirs, can be difficult to identify. After the title company finishes its search, it also provides a title insurance policy that will help protect you from a variety of issues that might be uncovered later.

In case such a defect is discovered, the Owner’s policy title insurer will work to resolve the defect in the title. If the matter goes to court, your interest and financial position will be protected by the insurer.  If you purchase an expanded policy, you can get even further coverage.  Also note that when you purchase an Owner’s policy, it covers you for the entire time that you own the home.

A real estate purchase may be the largest financial investment you ever make. When you buy an Owner’s policy of title insurance, simply think of it as buying some peace of mind.

Real estate transactions can be complicated, time consuming, and generally involve some degree of risk. We are available for a free consultation to discuss the benefits of an Owner’s policy or any other legal matter you may have.