"Title insurance?"

Dated: April 16 2022

Views: 5

There are dozens of details related to buying a home, and title insurance certainly isn’t among the first things one thinks about, so it’s not surprising that clients ask about it. They’d like to understand exactly what it’s for, why they have to pay for it, and why it comes up twice.

If you’re using a mortgage to buy your home, your lender will require you to have title insurance that protects their interests—but that policy doesn’t cover you from loss. For that you need your own title insurance. What kind of loss? Well, it could happen that there’s a previously unknown heir to the estate of a previous owner—even one several owners ago—who claims that the person who sold you the house didn’t actually own it. There could be a dispute over where the boundary lies between your property and a neighbor’s, or an argument over whether the easement allowing you a driveway up to your flagpole lot is valid. Resolving such issues requires lengthy and expensive legal action, and if you don’t prevail you could potentially lose a significant portion or even all of your rights to the property. During escrow, the title company performs a search to uncover any such problems, but since even the most diligent and professional search could possibly miss something, a title insurance policy is a very important protection. Considering the size of the investment in your home, the cost of a policy is a bargain.

Blog author image

DAVID DUNLAP

As a residential real estate executive with an extensive background in corporate marketing, I am able to apply unusually strong skills in marketing communications, e-marketing, strategic planning and ....

Latest Blog Posts

Even nice people should pay attention

Most people believe that they treat others fairly and would never discriminate against others based on their race, religion, or ethnicity. Agents and property owners who offer to sell or lease a,

Read More

"Title insurance?"

There are dozens of details related to buying a home, and title insurance certainly isn’t among the first things one thinks about, so it’s not surprising that clients ask about it. They

Read More

Yin & yang, inflation & interest rates

Mortgage interest rates are driven by inflation. If you had a million dollars and wanted to lend it to a home buyer, you’d choose an interest rate that would make the money work for you&mdash

Read More

A lesson in pricing

In strategy talks about putting a property on the market, I’ll sometimes hear clients suggest that we list a house for the highest price we might hope for—with the assurance that we can

Read More