What You Need to Know About Title Insurance

Title insurance is a form of protection that ensures the property’s title is free of any legal issues or claims. Here’s what you should know about this important safeguard:

1. What is Title Insurance?

Title insurance protects buyers and lenders from potential issues with the title, such as claims of ownership, unpaid liens, or legal disputes that arise after the purchase. This type of insurance is usually required by lenders but is also highly recommended for buyers.

2. Types of Title Insurance

• Owner’s Title Insurance: This protects the buyer from future claims against the property’s title.
• Lender’s Title Insurance: This protects the lender’s investment in the property in case any title issues arise.

3. Why You Need Title Insurance

Without title insurance, you could be at risk for legal complications, such as disputed ownership or uncovered liens. Title insurance ensures that you’re not held financially responsible for these issues after purchasing the property.

4. The Cost of Title Insurance

The cost of title insurance varies depending on the value of the home and location. In some cases, the buyer pays for the owner’s policy, while the seller may cover the cost of the lender’s policy. Be sure to ask your agent about the cost breakdown when purchasing.

5. How to Choose a Title Company

When purchasing title insurance, you’ll need to choose a reputable title company. Your real estate agent or lender can recommend trusted companies that offer reliable and affordable title insurance services.