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How Title Insurance Works

When you purchase a property, a title insurance policy is issued after a comprehensive title search. This search investigates public records to confirm the legal ownership of the property and identify any issues that could impact the buyer’s rights. Common title issues may include:

• Liens: Outstanding debts tied to the property, such as unpaid taxes or contractor bills.
• Ownership Disputes: Claims from heirs or previous owners contesting the property’s title.
• Fraud or Forgery: Instances where documents have been altered or forged, affecting the rightful ownership.
• Easements: Rights granted to others to use portions of the property, which may not have been disclosed.
  
  

  Why Title Insurance is Important

  • Peace of Mind: Title insurance provides security for homeowners and lenders, allowing them to invest in property without worrying about potential legal issues.

  • Financial Protection: In the event of a title dispute, the insurer will cover legal fees and any financial losses up to the policy limit, protecting the insured’s investment.

  • Lender Requirement: Most lenders require title insurance as part of the mortgage process to protect their financial interests.

  • One-Time Premium: Title insurance is typically paid as a one-time premium at closing, offering lifelong protection against potential title issues.