What in Tarnation is Title Insurance?
In a Nutshell: Property in America is a BIG deal. Knowing exactly who owns it, if anyone else has a hold on a piece of it, and who has rights to play on the property, is an equally BIG deal. Here is the peace of mind you are paying for with title insurance: The seller you are buying from is actually the seller. The seller will own the property outright (clear) by the time it is transferred over to you. If someone ever legally put a lien (a right to possession until a debt is paid in full) on the property and the seller didn't tell you about it when you bought it, and the person that placed that lien on the property wants their money at the time when you own the property, the title company will handle it and you can sleep good at night! For all these things, the seller pays for the policy which insures you (owner’s policy), and you pay for the policy which covers the lender (because they have a loan amount interest in the property as well). The policies are paid at closing,