Title Insurance

Title insurance is a form of insurance which will protect various ownership interests in the property. Lenders typically require buyers to purchase enough title insurance to protect the lender's interest in the property. Buyers may choose at closing to purchase a title insurance policy to cover their own interests as well, known as "owner's title insurance." Title insurance is a one-time fee, and its function is essentially to hire an attorney to defend the insured party against any hidden defects in the chain of title. We strongly encourage buyers to purchase enough insurance to protect their ownership interests, because your home is your most valuable investment.

Why do I need title insurance?

Title is the legal manifestation of ownership, and ownership of real estate determines who has the rights to occupy and use the real estate. Title insurance protects your ownership rights to your property. If anyone attempts to interfere with those rights, the title insurance company will defend your interests.

Lender's & Owner's Title Insurance

Your lender will require you, in almost all cases, to purchase enough title insurance to cover its interest in the property. The owner should keep in mind that a lender's policy will do nothing to defend you against any claims based on hidden defects in the chain of title, and you will probably have to hire an attorney to protect your own interest, even if the claim is meritless. However, if you purchase owners title insurance, you will be afforded the same protection as the bank.

No title examination can guarantee that a title is absolutely free of defects. Hidden defects, such as a forgery in the chain of title, a mistake in the public records, or a signature by an incompetent grantor, are difficult, if not impossible, to detect. Claims against title, even when they are without merit, can involve lengthy and expensive litigation. If a claim is raised against an insured property, the title insurance company will not only compensate for any valid claims, but will also pay for legal fees and court costs to defend title. Because title insurance is a one-time fee, based on the sales price of the property, it's a very cost-effective means of protecting your ownership rights. We encourage every buyer to insure his or her interest in the property.