What is title insurance? Should I get it?

Hello Kamari, Title insurance protects you against problems with a property's ownership history, things like unpaid liens, forged documents, unknown heirs claiming ownership, or clerical errors in past deeds that could surface after you've already bought the place. Unlike regular insurance, it's a one time premium paid at closing, and it covers you for as long as you own the home. There are two types, lender's title insurance, which your mortgage company will require, and owner's title insurance, which is optional but protects you personally. I'd genuinely recommend getting the owner's policy too, it's relatively inexpensive compared to the protection it gives, and title issues, even rare ones, can be expensive and stressful to fight without it.

Sixteen answers have told you what title insurance is, and they are right, so let me tell you the thing that decides whether your policy is worth anything: read Schedule B. When your title work comes back you will get a title commitment. It has two parts. Schedule A is the boring part: who is being insured, what the property is, the legal description. Schedule B is the part nobody reads and the part that matters, because it lists the exceptions. Exceptions are the things your policy will NOT cover. That is the whole game. Title insurance does not protect you from everything. It protects you from everything except what is listed in Schedule B. So the question is never "do I have title insurance." It is "what did they carve out." What you will typically find in there: recorded easements, meaning somebody has a right to use part of your land, maybe a utility, maybe a neighbor's driveway. CC&Rs if there is an association. Mineral rights that may have been severed from the surface long ago and belong to someone else. And a standard exception for anything an accurate survey would have disclosed. That last one is worth acting on. The standard survey exception means that if your neighbor's fence is three feet onto your property, or the garage encroaches, your policy may not cover it. You can often get that exception removed or narrowed by providing a current survey, sometimes for an additional premium. Ask your title company what a survey would cost and what removing that exception would cost. On a rural or wooded parcel, and Fairview qualifies, that is usually money well spent. So my answer to "should I get it" is yes, and then read Schedule B and ask questions about every line you do not understand. Bring it to your closing attorney. In North Carolina an attorney is typically involved in your closing, which is an advantage here. Use them for this. Ten minutes on Schedule B is the highest-value ten minutes in the whole transaction. Three more practical points the thread did not cover. If you are financing, your lender will require a lender's policy and you will pay for it. That policy protects the lender only, to the amount of the loan, and it does nothing for your equity. It is not a substitute for an owner's policy, and people conflate the two constantly. When both policies are issued together, the second is typically issued at a substantially reduced rate, often called simultaneous issue. So the incremental cost of protecting yourself, on top of the lender's policy you are already buying, is usually much smaller than people assume. Ask for that number specifically rather than assuming the owner's policy is a full second premium. And who customarily pays for the owner's policy varies by state and sometimes by county, and it is negotiable. Ask your agent what the local custom is where you are buying, because in some markets the seller pays it as a matter of course. One last thought on the "should I" part. Title problems are rare, and that is exactly why people skip the coverage. But the failure mode is not a small loss, it is somebody with a superior claim to your property, and legal defense costs alone can be substantial. A one-time premium against that, for as long as you own the place, is one of the better-priced protections in the transaction. I am a real estate professional, not an attorney or a title officer, so have your closing attorney walk you through your actual commitment. My name is Zoltan Peresztegi and I work in Los Angeles, the South Bay and on the Palos Verdes Peninsula, where we run through escrow and title companies rather than closing attorneys, so your process will look somewhat different from mine. If you want an introduction to a strong agent in the Asheville area, message me and I will make one. Zoltan

Title insurance is a policy that protects you and/or your lender from problems with the legal ownership of a property. It covers issues like unknown liens, unpaid taxes, errors in public records, fraud, or someone else claiming ownership after you buy the home. There are two types: lender’s title insurance, which is usually required if you have a mortgage, and owner’s title insurance, which protects you as the buyer. As for whether you should get it, in most cases yes, especially owner’s title insurance. It’s a one-time cost paid at closing, and it protects you from potentially serious legal and financial issues that could come up after you buy the home. Since I'm licensed in California, I can tell you it’s a standard part of most real estate transactions, and many buyers consider it worth the peace of mind it provides.

Title insurance protects you if there's a problem with the property's ownership, such as unpaid liens, recording errors, or someone else claiming ownership after you buy the home. It's a one-time cost paid at closing. For most buyers, title insurance is well worth it because it can protect you from expensive legal and financial issues down the road.

Title insurance protects against ownership issues that may have existed before you purchased the property, such as undisclosed liens, recording errors, fraud, or competing ownership claims. Lenders typically require a lender's title policy, but an owner's title policy is optional in many cases. I generally recommend owner's title insurance because it's a one-time cost that can provide valuable protection for your ownership rights.

Title insurance is a type of insurance that protects against problems with a property's ownership history, also known as the property's "title." Before a home is sold, a title company researches public records to verify ownership and identify issues such as unpaid liens, errors in legal documents, boundary disputes, undisclosed heirs, fraud, or other claims that could affect ownership of the property. The purpose of title insurance is to protect you if a problem is discovered that was not identified during that title search. There are typically two types of title insurance: Lender's title insurance, which protects the lender and is usually required if you're obtaining a mortgage. Owner's title insurance, which protects you as the homeowner. In my 23+ years as a Realtor, I've never had a client purchase title insurance and regret it. I have, however, seen title issues arise years after a transaction closed. While these situations are relatively uncommon, they can be incredibly expensive and time-consuming to resolve without insurance. For that reason, I generally recommend that buyers obtain an owner's title insurance policy. Unlike homeowners insurance, which requires annual premiums, title insurance is typically a one-time cost paid at closing and provides protection for as long as you own the property. Most buyers hope they never need it—and most never do—but if an ownership dispute, lien, clerical error, or previously unknown claim surfaces years later, title insurance can provide legal defense and financial protection. For many buyers, it's one of those items that seems unnecessary until the day it becomes very important. Mary Wassef Founder | Broker Circa Real Estate Top Producing Houston Realtor | Luxury & Historic Home Specialist Five Star Professional Award Recipient (15+ Years) | Luxury Home Marketing Guild Member | PRNEWS Award Winner Serving Houston Heights, Woodland Heights, Sunset Heights, Norhill, Garden Oaks, Oak Forest & Spring Branch

Kamari, title insurance protects you from past title issues like liens, errors, or ownership claims. Most buyers should get an owner’s policy for peace of mind.

YES YES YES! Title insurance is a policy that protects you (and/or your lender) from problems with the legal ownership of a property; issues that existed before you bought the home, but were not discovered during the title search. This can be the biggest asset in a worst case scenario. Keith Jean-Pierre Managing Principal The Dapper Agents Real Estate Operations in ALL 50 States

Title insurance protects you from financial loss caused by defects in the title to a property that existed before your purchase but were not discovered until after you owned it. In North Carolina and throughout Florida, title defects can include: unknown liens or judgments against the prior owner, forged or fraudulent deeds in the chain of title, errors in public records, undisclosed heirs who have a claim to the property, and boundary disputes that were not resolved before the sale. A title search conducted before closing is thorough but not perfect, and title insurance covers the gaps. There are two types of title insurance in Florida: the owners policy (which protects the buyer) and the lenders policy (which protects the mortgage lender and is almost always required when you finance a purchase). In Florida, the seller typically pays for the owners title policy in most transactions, though this is negotiable. The one-time premium is paid at closing and coverage lasts as long as you or your heirs own the property. Given that a title defect claim, while relatively rare, can result in the loss of the entire property, the premium is one of the best-value insurance purchases in a real estate transaction. In Florida, do not waive the owners policy even if it is optional in your transaction. Kevin Neely & Kaitlynd Robbins | K2 Sells

Title insurance protects you if someone later claims they have a right to your property. That could be an unknown heir, an old unpaid lien, a forged document in the chain of title, or a boundary dispute that nobody caught before closing. It covers issues that happened in the past, before you owned it. There are two types. A lender's policy is almost always required when you get a mortgage. An owner's policy is optional but covers you personally. It's a one-time premium paid at closing and it lasts as long as you own the home. Yes, get the owner's policy. It's relatively inexpensive compared to what you're spending on the home, and title problems, while not common, can be a nightmare to fight without it.

Title insurance protects you from problems with the ownership history of the property that existed before you bought it. And yes, you should absolutely get it. When you buy a home, a title company searches the public records to make sure the seller actually owns the property and that there are no outstanding liens, claims, or legal issues attached to it. But public records aren't perfect. Things get missed. A previous owner might have forged a signature on a deed. There could be an unknown heir with a legal claim to the property. A contractor might have filed a lien that didn't show up in the search. An old mortgage might not have been properly released. Title insurance covers you if any of these problems surface after you close. Without it, you'd be personally responsible for defending your ownership in court and potentially paying off claims against the property out of your own pocket. With it, the title insurance company handles the legal defense and covers the financial loss up to your policy amount. There are two types. The lender's policy is required if you're getting a mortgage. It protects the lender's interest in the property. The owner's policy protects you and is optional but strongly recommended. It's a one-time premium paid at closing, usually a few hundred to a couple thousand dollars depending on the purchase price. You pay it once and it covers you for as long as you own the property. Skipping the owner's policy to save a few hundred bucks at closing is one of the worst gambles you can make in real estate. If a title issue surfaces five years from now, you're on your own without it.

Protects buyers, sellers and lenders from any future claims (liens) against the deed of the property. I highly recommend it!

Title insurance is a type of insurance that protects home buyers and lenders against any claims or losses as a result of title defects. Title defects are any encumbrances or defects that would stop the buyer from enjoying legal ownership of the property. These could include failure of a lender to release a lien on the property, liens against prior owners, and fraudulent deeds or documents. Whether you should get title insurance depends on the situation. Title insurance is generally quite inexpensive, so in most cases, it is a good idea to get title insurance to protect against any possible title defects. However, if you are able to confirm that there are no title defects possibility, then you may not need to purchase it.

Title insurance is typically required by a lender. It is an insurance policy issued to cover buyer, seller and the lender against any liens or encumbrances that might be associated with the property. The title company researches everything about the property going back to its conception to make sure clear title is being passed to the buyer, that all taxes, assessments, mortgages and any other debts the property was used as collateral for were paid. Absolutely get!

Title insurance protects you from issues with an ownership title when you buy real property. These can be problems that existed before your purchase. Examples of problems can be Unpaid Property Taxes, Fraud or Forgery of previous documents, or a spouse or possibly an unknown heir who claims to own the property. Absolutely, Positively Obtain Title Insurance When Your Buy! Thom Lemon is a Broker in Texas and is also a REALTOR®. Thinking about buying or selling real estate in Austin, TX? Call/Text Thom at 512-346-7355 or email him at [email protected] Title companies search for problems with the title that need to be corrected before you buy the property. If there’s a challenge to your ownership later, your title company will handle the dispute.

Title insurance protects the owner property & the mortgage lender against future claims for any unknown defects in the title to the property at the time of sale.

Yes! Both the buyer and seller pay for title insurance at closing, but each type is slightly different. The seller pays for the title insurance coverage for the buyer, and the buyer pays for the title insurance policy for their lender. A lender’s title policy is designed to protect the financial institution providing your mortgage from title claims that would put their stake in your home at risk. Lenders almost always require borrowers to purchase title insurance on the lender’s behalf as part of the loan-approval process. It’s considered a closing cost.

Yes absolutely!! It protects you from liens that could be on title from previous owners. It is very affordable, and you pay for it 1 time at closing! A title search should be done before you purchase the home, and the title insurance protects you while you own the home. Find a great title company in your area to discuss further. Good Luck!