Title Insurance FAQ

What is Title Insurance?

Title insurance protects you against hidden mistakes.

Why is Title Insurance so Important?
  1. It provides a “safety fence” around your property and is your assurance of safety.
  2. Having title insurance can save you money, time, trouble—and even your home!
Who is Covered by Title Insurance?

The lender and the buyer. When you buy property, you are commonly required to buy title insurance. This covers the outstanding balance on the mortgage for the lender, but does not protect you. When acquiring property, it is a good idea to get your own title insurance policy. It will give you peace of mind and maximum protection in case there’s a claim against your home.

What Risks are Covered?
  1. Errors. Incorrect information in deeds, mortgages, public records, etc.
  2. Liens. Claims against the property or the seller that become the new owner’s responsibility after the sale.
  3. Claims to Ownership. For instance, a claim to “marital interest” by the spouse of a former owner or by a child of a former owner who was not mentioned in his or her parents’ wills;
  4. Invalid Deeds. For example, transfer by a previous seller who did not own the property.
What is the Title Search?

The purpose of a title search is to verify the seller’s’ right to transfer ownership, and to discover any claims, errors, assessments, debts or other burdens or restrictions on the property.

What is the Commitment to Insure?

The commitment to insure, sometimes called a “binder,” usually includes a summary of the condition of the title, including title defects, liens, etc.; conditions to be met in order to insure the proposed transaction and an agreement to issue a title insurance policy upon payment of the premium.

How Much Does Title Insurance Cost?

You pay a one time premium which covers you throughout your ownership of the property. Costs vary depending on the price of the property and various issues.

Please call us for an exact price. If you are getting both a lender’s policy and an owner’s policy, ask us about a simultaneous policy, which will save you money.