Why Title Insurance?

Title insurance for property owners, is typically issued in the amount of the real estate purchase, or sale price. The owner’s title policy premium is one-time fee, paid at closing and is in force for as long as the owner or his heirs have an interest in the property.

An Owner’s Policy completely protects the buyer if a covered title problem arises with the title that was not found during the title search.

Potential hidden title problems can include:

• Mistakes in examining records
• Outstanding mortgages and judgements
• Incorrect notary acknowledgements
• Undisclosed heirs
• Utility Easements
• Incorrect Deeds, Will and Trust documents
• Errors or omissions in deeds
• Forgery
• Potential pending legal action
• Mistakes in public record

Most lenders require a separate Loan Policy when they issue a mortgage loan. The Loan Policy is
typically based on the 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. This initial premium is paid at closing and
will become ineffective once the loan is paid in full.

Both an Owner’s Title Policy and a Lender’s Title Policy can be issued simultaneously.