Title Insurance: What are you buying?

In virtually every real estate transaction, title insurance will be required.  Both lender and purchasers want to be certain that title to the property is free and clear.  That means the property is not encumbered by delinquent taxes, unpaid liens, undisclosed heirs or other entanglements.

After the signing of a purchase agreement, a request for a title commitment is sent to a title insurance company.  They conduct a search of the public records to spot any blemishes on the property’s title.  When problems are identified the title company typically works with the seller to correct any issues.

There are usually two title policies issued in each transaction, one to the buyer of the property and a second policy to the lender (who usually has more invested than the buyer).

Typically there is no benefit to shopping rates as prices are regulated at the state level.

At the end of the day, the purchase of title insurance provides a guarantee that you purchased what you bargained for and no one is going to challenge ownership of your land.

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