Title insurance: What is it all about?

At Town n’ Country Title, we proudly say, “We take care of title issues before they become closing issues.” Our real estate partners appreciate this dedication, but we know many buyers and sellers don’t really understand what title is or why it’s important to have title insurance.

Our team is always happy to answer specific questions and we’ve even put an FAQ section on our website with some information. However, we thought this blog space would be perfect to talk about this topic a little bit more.  

So, imagine this, you just purchased your dream home.

You’ve signed the closing papers, received the keys, and begin to move in. You picked out all your furniture and have started decorating when you hear a knock. There’s someone at your door saying this property – and your new house – is theirs, and you’re not the owner. Luckily for you, there’s no need to worry, because you have title insurance.

Many first-time homebuyers don’t know a thing about title insurance, until they are closing on their home. What exactly are you paying for, and what is the policy protecting? To make a couple long answers short, it protects you and your property rights!

To start, we carefully explore and inspect the public records in an effort to find all recorded documents related to a particular property. This is known as a title search. We use it to determine ownership and anything that affects the property.

Title companies issue two insurance policies. One is for you; it’s known as owner’s title insurance. It ensures no one will come knocking at your door saying your house belongs to them. The other, known as lender’s title insurance, is for your mortgage company. It guarantees they are the first lien on the property.

Here’s a fun fact! Title insurance is the only insurance that protects the past and not the future. You are insured from anything that could pop up from the past. Purchasing title insurance is incredibly important because it’s protecting you and your dream house. 

After the date and time have been confirmed for your closing, all parties, which include sellers, buyers, Realtors, and attorneys, will meet at the title company. We are the ones who oversee the entire process. The final papers will be signed, and all the money is deposited and then disbursed to the appropriate people.

At last, you’ll get your keys and can call your house truly  yours. It truly is your house, and your house only…thanks to title insurance. Want to know more? Visit www.homeclosing101.com or the website for the American Land Title Association.

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