Title Insurance Companies

Title insurance is important since it provides you with an owner’s policy that insures you have clear title to the property being purchased. If there are any problems discovered later, you can always go back to the title insurance company and have them clear the title up. Depending on the state, it is sometimes routine for the seller to pay for the owner’s policy, but they have an interest in which company is used.

Nevertheless, a fee is paid to the title insurance company too. This is for the lender’s policy. The lender’s policy insures your mortgage lender that there are no liens or judgments against the property and that the mortgage will be in first position. Put another way, should you sell the property or refinance it, the lender’s mortgage gets paid first, before any other claims against the property. Lender’s policies are less expensive than the owner’s policy.

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