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In your journey to buy a home, you’ll learn many new real estate and mortgage terms and phrases. Title Insurance is one of those items, so here are 9 things you need to know:

1. Titles exist to prove legal ownership of property, such as a house, condo or vehicle.
2. The title of your new home needs to be transferred to you upon purchase.
3. Property ownership can only be transferred from seller to borrower with a clean and clear title, meaning no other person or entity can claim ownership.
4. A clear title means that it is free from judgments, liens and bankruptcies.
5. Nearly 1/3 of title searches turn up some irregularity. Even if it’s a small issue, it must be resolved.
6. Title insurance provides financial protection against things like fraud, forgery, spousal claims, undisclosed heirs and tax issues.
7. One type of title insurance is necessary to protect your interests. The other type is to protect the lender. Both are required.
8. You have the right to choose your title insurance provider.
9. Generally, the buyer pays for one policy while the seller assumes the cost for the other.

This quick list outlines the most common scenarios, but title insurance varies based on where you live and several other factors. Contact us today if you have any questions.
 
- Apr 11, 2019