What Is Title Insurance And Why Do I Need It?

Title insurance is a type of insurance that provides protection against financial loss or damages resulting from defects in the title of a property. It is typically purchased during the process of transferring property ownership, such as buying vacant land.

When you buy a property, you want to be sure that you have a clear and marketable title, meaning that there are no legal issues or claims that could jeopardize your ownership rights. Title insurance helps protect you from potential risks that may arise from undiscovered or undisclosed issues related to the property's title.

Here's how title insurance works:

1. Title search: Before issuing a title insurance policy, a title company or attorney conducts a thorough examination of public records to determine the property's ownership history, any liens, encumbrances, or other issues that may affect the title.
2. Risk assessment: Based on the title search, the insurer assesses the potential risks associated with the property's title. These risks may include errors in public records, undisclosed heirs, forged documents, unpaid taxes, or unresolved legal disputes.
3. Policy issuance: If the title search doesn't reveal any major issues, the insurer will issue a title insurance policy. The policy protects the property owner or lender (in the case of a mortgage) from financial loss or damages caused by covered defects in the title.
4. Coverage and claims: Title insurance policies typically cover a range of risks, including errors in public records, fraud, undisclosed liens, and other title-related issues. If a covered problem arises, the policyholder can file a claim with the insurer to seek compensation for losses, legal expenses, or other damages related to the title issue.

It's important to note that title insurance policies vary depending on the insurer and the specific terms of coverage. It's advisable to carefully review the policy and seek clarification from the insurer or a real estate attorney if you have any questions or concerns.

Title insurance provides peace of mind and financial protection for property owners, helping to mitigate risks associated with the title. We highly recommend title insurance for all property closes, and in some states it is a legal requirement. 

Happy to discuss how title insurance works at further length, and answer any questions you may have. You can always reach us at info@choiceland.com or better yet give us a call at 724-888-5250 and let's talk about what you're looking for!