Title Insurance FAQs

WHAT IS TITLE INSURANCE?

A title insurance policy protects property owners and lenders from losses that may occur as a result of title disputes

Essentially, you want to ensure that the seller has the legal right to sell the property and that when the transaction is completed, you actually own it

Title insurance is important because it protects you from title risks that could jeopardize your financial investment in your home or other property

It also safeguards the lender’s investment

What is Lender's Policy?

A lender’s title insurance policy protects the bank or other lending institution that issues your mortgage from any losses resulting from property ownership disputes.

A lender’s policy covers the loan amount, and the cost is based on the loan amount. The majority of lenders require this coverage, which expires when the mortgage is paid off.

What is an Owner's Policy ?

An owner’s title insurance policy ensures that the buyer has legal ownership of the property

The cost is based on the sales price

Policy lasts as long as the owner maintains a financial interest in the property.

When do you need Title Agency?

PURCHASE

1st meeting with Realtor

Signing of sales contract

REFINANCE

1st meeting with Loan Officer / Lender / Mortgage Professional

DO I HAVE TO PAY A MONTHLY PREMIUM FOR TITLE INSURANCE?

Title insurance is usually purchased for just a one-time fee when the real estate transaction is completed

Insurance benefits are paid in the name specified on the policy. Coverage is valid for as long as you own the property

WHAT DOES TITLE INSURANCE COVER?

Owner’s title insurance protects you from the following risks:

Fraud in connection with title ownership

Liens against the property that existed at the time the policy was issued

Errors in the public record that are not discovered prior to the sale

Incorrect or conflicting wills and trusts pertaining to the title

Missing heirs who appear unexpectedly and claim ownership of the property

Deeds and other documents that have been forged or misfiled

Title errors or flaws that are not discovered during the initial title examination

Lender’s title insurance protects the lender’s interest in the property and covers the amount of the mortgage loan if any of the above risks occur

WHO PAYS FOR TITLE INSURANCE ?

In NJ,NY and PA buyer pays for the owner’s policy

HOW ARE RATES FOR TITLE INSURANCE DETERMINED?

The regulations governing title insurance rates vary by state