The Importance of title insurance
Lawyers Land & Title Services offers title insurance for property owners. Typically title insurance is called an Owner’s Policy, and covers the amount of the real estate purchase. The owner of the real estate purchases title insurance one time at closing, and is valid as long as the owner, or their heirs, retain an interest in the purchased real estate. An Owner’s Policy fully protects the buyer should a covered title problem arise with the title that was not found during the title search. Possible hidden title problems can include:
• Errors or omissions in deeds
• Mistakes in examining records
• Undisclosed heirs
Title insurance for mortgage lenders title insurance is called a Loan Policy. Most lenders require a Loan Policy when they issue a mortgage loan. The Loan Policy is usually based on the dollar amount of the loan and it protects the lender’s interests in the property should a problem with the title arise. It does not protect the buyer. The policy amount decreases each year and eventually disappears as the loan is paid off.