More Common Questions
Why do I need title insurance?
What happens if a title problem is discovered?
I’m buying a home that was just built. Do I need title insurance?
If I buy title insurance, do I have to pay a premium each month?
What's the difference between owner's and lender's title insurance?
What are closing costs?
Why do I need title insurance?
Because mistakes can happen, even when you are in the hands of an expert title examiner. A default or lien going back dozens of years might be missed. A long-lost heir could materialize and claim the property. Also, it’s highly unusual to find a lender who will give you a mortgage without title insurance.
You are making a substantial investment when you buy a home, why not spend a little more to protect yourself? The TitleWizard™ will help you find title policies and rates available in your county, so you can compare before you buy.
What happens if a title problem is discovered?
Your title or closing agent or attorney will help get it resolved so that the sale can take place. The American Land Title Association (ALTA) estimates that 26% of title searches discover an issue that gets resolved before a title policy is issued. If a problem that is covered by your policy is discovered after the sale, title insurance will usually pay for any covered legal expenses that you incur to resolve the issue.
I’m buying a home that was just built. Do I need title insurance?
It’s a very good idea. Here’s why. You may be the first owner of the home, but the land that it’s built on has probably had many previous owners. Title insurance will protect you against any liens or other pesky problems that could be costly to resolve (including legal fees to defend your claim to the property).
A title policy also comes to the rescue if a subcontractor or supplier who was involved in the construction of the home was not paid by the builder. For example, a carpenter, who has completed the work he was given, may have the right to place a lien on your property if a builder refuses to pay him. (This is not uncommon.)
If I buy title insurance, do I have to pay a premium each month?
No. You only pay once, when you close the transaction and you’re protected from any defects related to title ownership that occurred before you owned the property for as long as you hold title to it.
What's the difference between owner's and lender's title insurance?
An owner's policy protects your rights to a property in the event of a loss due to defects, liens or encumbrances that affect title to the property. A lender's policy insures the bank or other financial institution that is making your mortgage loan for the total amount of the loan. Note: Most lenders require title insurance.
What are closing costs?
All the fees you will need to pay for such things as escrow services, a home inspection, an appraisal, hazard insurance, pest inspections, notary services, fees to file your deed with the county recorder, etc. You pay these costs when you close your real estate transaction. (Remember, these are separate from the down payment you make for the property.)