Home Buyer Question: What is title insurance?
/by Brian Huie on 5/13/2024
Title insurance insures your ownership rights to the property against title issues from past owners for as long as you own the home.
The title company will research all records related to the property’s title, and where possible, they will remedy ownership issues, before the title can pass on to the buyers. However, even very experienced title agents may not find every issue. Some title problems may be due to filing errors, forgeries, or undisclosed heirs, and these may be difficult to identify. After the title company finishes the research phase, they will provide a title insurance policy. This policy will help protect you from a variety of issues, should they arise, that might be uncovered after your home sale has closed.
If you are financing your home purchase, there are two title policies that will be included in the sales process. 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. This policy is purchased by the buyer.
Additionally, an owner’s policy will be purchased- this is the policy that protects you, the new owner. In our market, the seller pays for this policy.
For more information on common buyer concerns, click here.
