What Is Title Insurance?

Why do you need title insurance?

When you purchase your home, how can you be sure that there are no problems with the home's title and that the seller really owns the property? Problems with the title can limit your use and enjoyment of the property, as well as bring financial loss. That is what a title search and title insurance are for.

What is title insurance?

A Title Insurance Policy protects the Homeowner and/or the Lender against loss due to any problem in the title.

How does it work?

A search of the public land record is performed on the property in order to reveal any and all liens and problems with the title. The problems that are found can be addressed and handled before the closing. After closing, a Title Insurance Policy is issued. An Owner’s Policy is issued to cover the Owner of the property, and a Lender’s Policy is issued to cover the Lender who provided the mortgage on the property, if any. This Title Insurance Policy protects against any issues that might occur after the closing.

What are possible hidden title problems?
  • Errors or omissions in deeds
  • Mistakes in examining records
  • Forgery or Fraud
  • Undisclosed heirs
  • Conflicting wills