Introduction to Title Insurance

What is Title Insurance? Title Insurance protects buyers and mortgage lenders from financial losses that can arise from defects and disputes that do not arise before a real estate transaction.

What is Title Insurance?

When buyers and sellers contract for the sale of a property, they often select a Title company to initiate a search of the local counties land records to search for any liens, claims, and defects in title that will need to be cleared up before the property can be transferred. Title insurance Covers title defects that occurred prior to receiving ownership of the property, it will help protect you and assure your that your investment in your home is safe.

What does Title insurance cover?

While owners title policies are optional, if you get a Mortgage or Loan on your home, most lenders will require a Lenders Title insurance Policy be purchased to, at the very least, protect the Lenders interest in the property. The Owners Title Policy protects you the Home owner and the Lenders Title Policy protects the Lender

In the event you have to make a claim, a title insurance policy would compensate you for damages and costs required to fix the issue. It will help protect against damages resulting from several possible defects including Fraudulent releases, Previous liens that were not released, Title Defects, and Liens that have been filed incorrectly on the property. Without Title insurance you could be responsible for fixing these issues yourself or worse could lose your home without receiving compensation.


What to do after the property has been purchased

Generally, the Title company will provide copies of the Deeds, Deeds of Trust, and easements they filed as part of the transaction post-closing. However, if you would like to double check the Land Records for yourself, you can find copies of those documents filed with County Clerk. Nowadays most of those documents are available on line for viewing on the county clerk website.


Who Pays for the cost of Title insurance?

It is customary for the Buyer to pay the cost of Title insurance as it protects their investment in the property, However you are free to negotiate who pays for it and what Title company you want to use as part of the purchase negotiations for the property.


How much Does Title insurance Cost?

The cost of Title insurance can vary from state to state, but in a state like Texas the cost of Title insurance Premiums is set by the government and will be the same no matter which Title company you choose. If you get a loan the Lender will require you to pay the cost of the Title insurance for both the Lenders Title policy and for the Owners Title Policy.


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