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Title Insurance

Download Our Free Guide to Title Insurance

What is Title?

Simply stated, the title to a piece of property is the evidence

that the owner is in lawful possession of that property. 


How is Title Insurance different from other insurances?

Insurance such as car, life, health, etc., protects against potential

events and is paid for with monthly or annual premiums.

A title insurance policy insures against the chain of title, in the

past and present, of the valued property and the people who have

owned it, and whom currently own it, for a one-time premium paid

at the close of the escrow.   It covers you even when you no longer own

the property.


What does it cover?

Title insurance protects against claims from defects. Defects are

things such as another person claiming an ownership interest,

improperly recorded documents, fraud, forgery, liens, encroachments, easements and other items that are specified and covered in the title 

insurance policy. 


Who pays for it?

State laws and customs vary on who pays for title insurance, but here’s

who generally pays for title insurance:

  • Home buyers typically cover costs for lender’s Title Insurance as

       they are the one who is taking a loan from the lender/bank, who

       require lender title Insurance.

  • Typically the Buyer pays for the Title Insurance at the closing for the property they are purchasing.  Sometimes, the seller could pay for

       the title policy as an offering to help with the sale of their property,

       for paid closing coats.

Title insurance protects real estate owners and lenders against any property loss or damage they might experience because of liens, encumbrances or defects in the title to the property. Each title insurance policy is subject to specific terms, conditions and exclusions.


Buyers and lenders need title insurance in order to be insured against various possible title defects. The buyer, seller and lender all benefit from issuance of a title insurance policy. 

Because title insurance protects both home buyers and lenders, there are two types to suit the end user’s needs:

  • A lender’s policy is generally required when a lender issues 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.

  • An owner’s policy, purchased at closing, provides coverage for the homeowner. It is usually issued in the amount of the real estate purchase and is valid for as long as the owner or his heirs have an interest in the property. Only 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

    • Forgery

    • Undisclosed heirs

There are two types of owner’s title insurance policies certified by the American Land Title Association® (ALTA®):

  • The owner’s policy protects you from defects and liens in the history of your title through the date and time your deed is recorded in the public records.

  • The homeowner’s policy takes your protection to a higher level by providing coverage for many additional risks, including some that might occur after the deed has been recorded. The Homeowner’s policy protects against many common, frustrating problems, and the policy protects your investment for as long as you or your heirs own the property. 

Our CTC legal team is eager to work with you and answer any questions you may have. If you have concerns about title insurance or questions about your property, please reach out to our team!

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