Where to Buy Title Insurance

If you are planning to buy a new home or property, you may have heard about title insurance. Title insurance is a type of insurance that provides protection from financial loss in case of any defects or issues with the property title. It is essential to have title insurance to ensure that you have a clear and marketable title to the property.

What is Title Insurance?

Title insurance is a form of indemnity insurance that protects the policyholder against financial loss if there are defects in the property title. Title defects can include any issues related to ownership, such as liens, forgery, fraud, or errors in public records. Title insurance provides coverage for these issues and ensures that the owner has the legal right to sell or transfer the property.

There are two types of title insurance: owner’s title insurance and lender’s title insurance. Owner’s title insurance protects the buyer, while lender’s title insurance protects the lender. Most lenders require the borrower to purchase lender’s title insurance to protect their collateral in case of any title issues.

Where to Buy Title Insurance?

There are several ways to purchase title insurance. You can buy title insurance from:

Title Insurance Companies

Title insurance companies are the most common source for buying title insurance. These companies specialize in providing title insurance policies and have a deep understanding of the legal and title issues that can arise during property transactions.

Before selecting a title insurance company, you should do your research and compare quotes from different companies. You can check online reviews, ask for recommendations from your real estate agent, and choose a company that has a good reputation and offers competitive rates.

The title insurance company will conduct a thorough title search to identify any issues with the property title before providing you with a title insurance policy. The policy will protect you from any financial losses due to title defects and ensure that you have a clear and marketable title.

Real Estate Attorneys

If you are working with a real estate attorney, they can also provide title insurance policies. Real estate attorneys have a deep understanding of the legal aspects of property transactions and can advise you on the best title insurance policy for your situation.

When choosing a real estate attorney, make sure they have experience in handling title insurance policies. They should be able to work with title insurance companies and help you choose a policy that meets your needs.

Mortgage Lenders

If you are getting a mortgage loan, your lender may require you to purchase lender’s title insurance from a specific title insurance company. The lender wants to protect their collateral in case of any title issues that may arise during the property transaction.

You can still choose your own title insurance company for the owner’s title insurance policy, but you will have to purchase lender’s title insurance from the lender’s preferred company.

FAQs

Do I Need Title Insurance?

Yes, it is highly recommended to have title insurance when buying a property. Title defects can arise at any point during the property transaction, and title insurance provides protection from financial loss due to these defects.

How Much Does Title Insurance Cost?

The cost of title insurance varies depending on the value of the property and the location. On average, title insurance costs between 0.5% to 1% of the property value.

How Long Does Title Insurance Last?

Owner’s title insurance lasts for as long as you own the property. Lender’s title insurance lasts for the duration of the mortgage loan.

Can I Switch Title Insurance Companies?

Yes, you can switch title insurance companies when renewing your policy. However, you should make sure that the new company is providing the same or better coverage than your current company.

What Does Title Insurance Cover?

Title insurance covers any financial loss due to title defects or issues related to ownership, such as liens, fraud, forgery, or errors in public records.

Conclusion

Buying title insurance is an essential step in any property transaction. It provides protection from financial loss due to title defects and ensures that you have a clear and marketable title to the property. You can purchase title insurance from title insurance companies, real estate attorneys, or mortgage lenders. Make sure to do your research, compare quotes, and choose a policy that meets your needs and budget.