Why Do I Need Title Insurance?

27 May

What is the purpose of Title Insurance? First let’s take a look at what “Title” means to get a better understanding of Title Insurance:  it is the legal right to possession of ownership. Title insurance protects the holder from any losses sustained from defects in the title. In other words, title insurance protects the Buyer or new owner in case there is anything wrong with the previous possession of ownership. Most mortgage lenders require Title Insurance.

It protects your rights to your home. Whether you are buying a home with cash or mortgage, it protects you from fraudulent claims and mistakes made in earlier sales. Title Insurance is a one-time cost and is usually paid for by the Seller. But never assume this to be true as it may vary depending on how it is negotiated in the contract.

Lenders also require Title Insurance for any refinance, including a Reverse Mortgage.

When you buy a home it is important to have a good Title company to do an extensive search at an affordable rate. The Closing Company or Attorney which will coordinate the closing of your home normally runs a Title search for you. An experienced Title officer will review and analyze all the documents from the search. They will determine the status of title for the title insurance policy.

There are typically 2 types of Title Policies you should be aware of: Lender title policies, which protect the lender, and owner title policies, which protect you.

Tradition Title Agency has been providing Title Insurance for over 20 years – trust the agency with experience and knowhow!

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