Frequently Asked Questions
Q: What is Title Insurance and why is it important?
A: Title insurance protects a property, buyer or lender from financial losses caused by defects (or clouds) in the property's title.
Q: Is Title Insurance a one time fee or a recurring fee?
A: It's a one-time premium paid when the property is purchased or refinanced.
Q: What defects does Title Insurance protect against?
- Unpaid taxes: Property taxes that haven't been paid
- Fraud: Forgery of previous paperwork or fraudulent impersonation
- Liens: Judgments, tax liens, environmental liens, or mortgages
- Missing owners: Unknown heirs or spouses who claim ownership
- Document errors: Mistakes in the property's records
Q: What are the different types of Title Insurance?
- Owner's policy: Protects the buyer's interest in the property
- Lender's policy: Protects the lender who issued the loan to the buyer
- Leaseholder's policy: Protects the interest of long-term renters
Q: How much does title insurance cost?
- The premium varies by state and the value of the property
- A policy can cost between $500 and $3,500
Q: How does title insurance work?
- Title companies review the property's history and work to fix any problems before closing
- The insurance company may defend the title, pay for the covered matter, or pay the policyholder for the loss