Title Insurance 101

In the world of title insurance, there are typically two policies issued at the purchaser’s closing.

There is an owner’s policy, which protects the buyer, or the new owner, and the lender’s policy protects the lender financing the purchase. With a cash purchase, there would be no lenders policy issued.

Typically the buyer pays for the owners policy, guaranteeing a clear or clean title at the closing. The buyer also pays the lenders policy as well, which protects their lender.

The owners policy is not required but HIGHLY recommended. We always recommend an owners policy, mainly for the protection it gives the buyers. There are numerous things that this covers, one being previous liens and judgments placed against a property that may not have been properly released, or missed in a prior transaction.

However, it can also cover a number of other things tied to a property, such as:

*Errors made by the Clerk’s office during indexing of the recording documents

*Fraud – Coverage is given when someone forges the insured party’s signature in an effort to sell or impose a lien on the property

*Building permit violations – in the event the insurer is forced to remove or remedy an existing structure built without obtaining proper building permits.

*Covenants, conditions and restrictions – insures against the loss of the land occurring prior to the acquisition of title.

*Enhanced access – if access to and from land is not available for both pedestrians and vehicles.

This is just a few items that owners title insurance can cover. Getting this protection is a one-time fee and remains in effect for the entire duration you own the property. For a full list of coverages, please give Title Concepts a call. We are more than happy to help you with your next transaction