Why Do I Need Title Insurance?
Title insurance protects you against losses that might arise due to defects in your ownership interest in a property. Whether you're purchasing a new house or refinancing your existing home, title insurance is a critical piece of the process.
When you buy a home, you’ll purchase an Owner’s Title Policy to protect your investment and ownership rights. In our area, it is customary for you, the buyer, to pay for the title insurance policy. Your policy will defend against hidden title issues and provide for a title search. The title search is designed to reveal any title issues before you close.
A Real Estate Board sales contract will dictate the responsible party as well as include your right to review the title commitment and a survey within a set number of days after contract acceptance.
One of the most common questions we receive on a refinance transaction is, “Why do I need to pay title insurance again?” The answer is simple. While your Owner’s Policy is paid once at the time of purchase and protects you as long as you own the property, a Lender’s Title Policy only covers your lender while their mortgage exists. Your new lender requires a new lender’s title policy.
During a refinance, one mortgage is satisfied, terminating the existing loan policy. In order for your lender to remain insured over the new mortgage—and to protect their interest in the property—a new lender’s policy must be issued and paid for.
Identifying Red Flags with a Title Search
A title search can uncover many defects that impact your title. These may include a break in the ownership chain, unpaid taxes, unsatisfied mortgage liens against the current owner or a prior owner, liens, judgments or other legal action, as well as any easements and restrictions that may affect the real property.
Despite the expertise and dedication that goes into a title search, unrecorded claims like mistakes in public records, forged deeds or prior owners claiming ownership interest, can emerge after closing. Your title insurance partner will guide you safely through the processes both before and after your transaction has closed.
Closing Your Sale with Confidence
Choosing the right title company can make or break your closing process. Title problems can sometimes halt a closing when the title agent lacks the experience and knowledge to resolve complex issues.
Investors Title maintains a legal staff to help with minor to complex title issues. We provide assistance in title matters ranging from simple contractual questions to issues involving trusts, probate, bankruptcy and foreclosures. Moreover, our legal staff is available to provide our closing officers the knowledge and legal consultation to ensure every transaction closes smoothly—and on schedule.
Whether you are buying, selling or refinancing, our goal is to ensure you have the information and resources you need. Our commitment to providing the highest quality service at the best prices drives the work we do every day. Contact our team today with any additional questions, or to request a title quote.