FAQ: What is title insurance?
Title insurance protects you from claims arising from defects in the title of your home.
During the closing process the title company does a complete title search on the property to determine that the title is clear and can be delivered to the new buyer without defects.
The home you are purchasing has likely gone through several owners and the land even more. The title search process could have missed something that had gone wrong somewhere in the history of the title.
These mistakes can include:
- unknown heirs
- forgery in previous transfer of title
- unrecorded leins
- errors on the deed
Title insurance comes in 2 policies, one for the lender and one for the owner. Both policies are usually paid for by the buyer. Most lenders are going to require that the lender coverage. The owner coverage is optional.
The cost of the coverage is a one time fee that protects you for as long as you own the home. The cost of the insurance is a small price to pay for the coverage and the peace of mind that it creates should a problem come up.
If you or someone you know would like information about buying, selling, or renting a home in Prince George's, Montgomery, Charles, Calvert, Anne Arundel, Howard, and/or Baltimore Counties please contact Dr. Stacey-Ann Baugh of Century 21 New Millennium.
Dr. Stacey-Ann Baugh
Century 21 New Millennium
FINALLY! A DOCTOR WHO MAKES HOUSE-CALLS!
Information deemed reliable but not guaranteed!