What is Title Insurance?
Title insurance provides protection, for the homeowner and/or the lender, against a loss that may occur as a result of several possible defects in the chain of title of a particular property. Title insurance rates are regulated by the state. The rate will depend on the purchase price, when buying a property or the loan amount in a refinance.

Title defects that are protected through title insurance include a forged signature on a deed, a judgment/lien that is attached to the land and missed by a prior title search, an old, open mortgage that has not been released, unpaid taxes, etc. A property may pass through many ownership changes and a title search and title insurance is imperative for the protection of the buyer and the lender.

When do I need Title Insurance?
When buying a property, it is highly recommended that, a buyer purchase title insurance. This is called an owner’s policy. A title insurance policy is purchased at closing, for a one-time premium and included in the closing costs. Whether a purchase or a refinance the borrower or the buyer always gets to choose the title company in a real estate transaction. If anyone insists that you use a title company they recommend, you should ask them if they are receiving a commission or referral fee from the company or if they are affiliated with the company they are recommending.

Why do I need Title Insurance when refinancing?
Every time a bank or mortgage company lends you money, they will always require title insurance. The lender requires a new search and new policy because certain events may have happened since you purchased the property. Usually there is a discount rate when purchasing title insurance for a refinance. A lender’s policy protects the lender up to the amount of their outstanding debt on a mortgaged property. This is called a lender’s policy.

What is the difference between a “Basic Owner’s Policy”
and an “Enhanced Owner’s Policy”?
Enhanced policies provide the owner additional coverage. Enhanced policy cost more but the extra coverage may be beneficial depending on your particular circumstance. Be sure to ask our representative about the advantages of enhanced coverage.

Who pays for Title Insurance?
In most cases, the buyer or the borrower pays for the premium.