Real Estate Title can be confusing. But what can be even more confusing are the different policies and types of insurance that are discussed during the title process. Here we discuss each of them briefly for you:

  • A Owner’s Policy provides the buyer with protection in case an undiscoverable defect comes up after the title search. These title issues could include forgery, fraud, or clerical errors, and without title insurance, the buyer could potentially lose the property. Each side of the transaction pays 50% of the policy at closing.
  • The Loan/Lender’s Policy is usually required by the lender who is financing the purchase. The lender’s policy only protects the interest of the lender. This title policy assures the lender that they are protected against any outstanding liens and issues with the property.
  • Title Insurance covers past problems with a property, like faulty ownership records, outstanding liens, fraud, undisclosed heirs, improper recordings from escrow and closing, and missing information.
  • Homeowner’s Insurance protects a buyer financially if something bad happens to the home. This kind of insurance pays for any accidental damages and loss that are caused by fire, lightning strikes, windstorms, and hail, however, damage from earthquakes and floods is typically not covered. It also covers the replacement of personal property in case of theft or damage and liability if a person were to get injured in your home or on your property.

It is always a good idea to discuss any questions you have with a licensed title agent who can guide you through the closing process. Our knowledgeable staff is happy to assist you no matter what stage of the journey you are in! Call us today at 330-477-3589!