What is title insurance and why do I need it?
Title insurance protects you and your lender from potential disputes or claims against the title of your property. It ensures that the property you are buying has a clear ownership history, free from liens, unpaid taxes, or other issues that could jeopardize your ownership.
What does a title search involve?
A title search is a detailed examination of public records to verify the legal ownership of a property. It uncovers any liens, judgments, or other legal encumbrances that may affect the title, ensuring that the property can be legally transferred to the buyer.
What’s the difference between a lender’s policy and an owner’s policy?
A lender's policy protects the lender’s interest in the property and is typically required for mortgage approval. An owner’s policy, which is optional but highly recommended, protects your investment in the property as the buyer from any title-related claims.
How long does the title process typically take?
The title process can take anywhere from a few days to a few weeks, depending on the complexity of the property’s title and the responsiveness of third parties, such as municipal offices. We work diligently to ensure a timely closing
How much does title insurance cost?
Title insurance is a one-time fee paid at closing and varies depending on the property’s value and location. Generally, it is a small percentage of the total purchase price.
Are there any ongoing fees for title insurance after closing?
No, title insurance is a one-time premium paid at closing. There are no ongoing fees or renewal payments after the initial policy is issued.
What risks does title insurance protect against?
Title insurance protects against a wide range of issues, including liens, unpaid taxes, boundary disputes, fraud, forgery, and errors in public records that could affect your ownership of the property.
When should I purchase title insurance?
Title insurance is typically purchased at the closing of a real estate transaction. It’s important to have it in place before you finalize the purchase to ensure protection against any potential title issues.
What happens if a title issue is discovered after closing?
If a title issue arises after closing, your title insurance policy will cover the legal defense costs and any financial losses associated with the claim, depending on the specifics of the policy.
Can I choose my title insurance provider, or does the lender pick one?
As the buyer, you have the right to choose your title insurance provider. However, the lender may require that their policy be issued by a specific company. You can select your own provider for the owner’s policy
How is title insurance regulated?
Title insurance is regulated at the state level, with each state having its own rules regarding pricing, coverage, and the licensing of title insurance companies.
Is title insurance required by law?
Title insurance is not required by law, but most lenders will require a lender’s policy to protect their investment. An owner’s policy, while optional, is highly recommended to protect your ownership rights.
How does title insurance differ from homeowner's insurance?
Homeowner's insurance protects your property against physical damage and liability issues. Title insurance, on the other hand, protects your legal ownership of the property from title defects and claims.
What is a title commitment?
A title commitment is a document issued by the title company that outlines the terms and conditions under which it will issue a title insurance policy. It includes any potential issues that need to be resolved before the policy is issued.
Can I transfer my title insurance policy to another property?
No, title insurance policies are specific to the property they cover and cannot be transferred to another property. If you purchase a new property, you will need to obtain a new title insurance policy.