FAQ

When you purchase your home, how can you be sure that there are no problems with the home’s title and that the seller really owns the property? Problems with the title can limit your use and enjoyment of the property, as well as bring financial loss. That is what a title search and title insurance are for.

After your sales contract is accepted, a title professional reviews public records to check for title issues. This search often goes back many years. Over one-third of searches reveal problems—such as unpaid taxes, liens, or contractor bills—that are usually resolved before closing. However, some issues may appear later, which is why title insurance matters.

Some title problems cannot be found in public records or may have been missed during the search. An Owner’s Policy of Title Insurance protects you against these unforeseen issues.

Owner’s Title Insurance is issued for the purchase price of the home, paid once at closing, and lasts as long as you or your heirs own the property. It fully protects the buyer if a covered title problem arises after purchase.

Hidden issues may include:

  • Errors or Omissions in Deeds
  • Mistakes in Record Review
  • Forgery
  • Undisclosed Heirs

An Owner’s Policy provides financial protection and legal defense if a claim occurs. It is not always automatic, and payment responsibility varies by location. Be sure to request it. A one-time fee at closing protects you for the ownership duration.

You may also choose expanded coverage called a Homeowner’s Policy, which covers more risks. Ask your title company for details.

There are two types of title insurance: Owner’s and Lender’s (Loan Policy). Most lenders require a Loan Policy when issuing a mortgage. It protects only the lender’s interest, not the buyer’s. The coverage amount decreases over time and ends when the loan is paid off.

Pricing varies by state. Ask whether the Loan and Owner’s Policies are sold separately or together.

Fraud and Forgery

Fraudsters may forge deeds or impersonate owners. These issues often surface after closing. An Owner’s Policy protects buyers by covering legal defense and financial losses.

Conflicting Wills

Disputes over unrecorded deeds or contested wills can threaten ownership. Owner’s Title Insurance covers claims and legal costs in these situations.

Missing Heirs

Unknown heirs may later claim ownership rights. Even when not discoverable during a title search, an Owner’s Policy protects the buyer financially.

An Owner’s Policy is essential for full protection. Lender’s insurance only protects the lender.

Refinancing creates a new loan, requiring a new title search and a Loan Policy for the lender. You do not need a new Owner’s Policy; it remains valid as long as you own the property.

Ask if you qualify for a refinance or reissue rate, which may reduce costs.

Yes. Even new homes sit on land with a prior ownership history. Unpaid contractors or boundary issues can result in liens. An Owner’s Policy protects against these risks and covers legal costs if claims arise.

If you have a title concern, contact the title insurer listed on your policy. If you cannot find your policy, contact the title company or review your HUD-1 settlement statement.

When filing a claim, include the property address, a brief description of the issue, any related documents, and a copy of your policy if available.

Closing (also called settlement) is when property ownership transfers to the buyer and the mortgage is finalized. A settlement agent coordinates document preparation, title work, and escrow handling. On closing day, documents are signed and ownership transferred. After closing, the settlement agent completes recording and payments.

Closing costs include fees related to loans, title services, escrow, insurance, inspections, and government recording. All expenses appear on the HUD-1 settlement statement.