What is a Title Insurance Policy? A Title Insurance Policy is meant to protect an owner or a lender's financial interest in real property against loss due to title defects, liens or other matters (including human error).
Your Basic Title Policy Covers:
* Clear title to the property
* Incorrect signatures on documents
* Forgery & fraud
* Defective recordation
* Restrictive covenants
* Encumbrances or judgments
Who pays for the Title Policy Insurance? Typcially the seller pays for the Owners Title Insurance Policy, but most bank owned properties have their own addendum that you are required to sign. At times, these addendums will state the seller will not pay for certain customary items; title insurance may be one of them.
How long are Title Policies good for? For as long as you or your heirs own the property, and in some cases, even beyond, and you only pay the premium one time.
The final step to homeownership is when you "close" with a title insurance company. The closing is the process of completing a real estate transaction during which deeds, mortgages, and other required documents are signed and/or delivered and where money is dispersed. Below are the local, recommended title companies.