Q: What is Title Insurance?
Title insurance is an insurance policy that protects you as a buyer and your lender, in terms of taking clear and free ownership of a property when it transfers to you as the new owner.
Title insurance is something that is required in all transactions, and the title insurance company’s job is to pull all information of public record any liens, monetary encumbrances or encroachments that might be on the property or any other negative claims against the property, and then clear those prior to the ownership transfer occurring.
Q: Who pays for the title insurance?
Title insurance is paid for by both the buyer and seller. There are two policies that are issued in the transaction. The first policy is called an owner’s policy and is paid for by the seller, and the second policy is a lender’s policy, which, if you’re financing will be required, and you as the buyer would be paying for that policy.
Q: Are there different types of title insurance?
There are different types of title insurance policies out there. There’s typically three that exist, however most buyers and home owners are not going to encounter any other ones than the most commonly used one, which is the default home owners policy. There is a standard owners policy that is issued on new construction and an extended owners policy that you’d typically see in waterfront where a survey would be required and more extensive research on the property.