Every time I work with a Buyer or Seller they ask about Title Insurance. I find it can be very confusing, so I have a description of the two kinds of Title Insurance below and why they exist.
Title Insurane Descriptions
If you have recently purchased or refinanced a home, chances are you have had to get title insurance. Basically, title insurance protects you against problems affecting the title to your home. There are two types of title insurance—a Loan Policy, and an Owner’s Policy. A Loan Policy protects the lender for the amount of the loan, while the Owner’s Policy protects you, the homeowner, for your investment in the property—your equity. In both cases, the title process covers an exhaustive search of public records to make certain the title to the subject property is clear, and covers against future loss if a claim against the property is made. While discovering an issue with your title can seem rather remote, one out of every four title searches reveals a problem with the title. Examples include tax liens, forged signatures in the chain of title, recording errors, title search errors, undisclosed easements, and title claims by missing heirs and/or ex-spouses. Fortunately, these problems would be uncovered in a title search before you even close on your home.
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