what is title insurance

why do I need title insurance

It depends on what is agreed upon between a Buyer and Seller when the Contract is negotiated. Typically the Seller pays the Owner's Title Insurance Policy and the Buyer pays the simultaneous issued Lender's Title Insurance Policy.

Many Homeowners assume that when they purchase a piece of property possession of a Warranty Deed (Quit Claim Deed, Personal Representative Deed, Special Warranty Deed, to name a few type of Deeds) to the property is all they need to prove ownership. This is not exactly true. Buyers and Lenders will want to make sure that the property is indeed yours and not anyone else has a claim of lien or any encumbrances on the property. A property Owner's greatest protection is an Owner's Title Insurance Policy. Lenders will also seek protection with a Lender's Title Insurance Policy. Federal Title Insurance Associates, Inc. can issue both policies simultaneously.

Title insurance works differently than any other insurance you will ever purchase, it insures the past. Most insurance insures the future such as if you get sick, if you die, if you get injured. Title insurance insures you from the time you take Title to your property back in time (30 years in most cases). Title insurance can not insure the future as it can not be predicted that should you for instance have a pool installed, and you do not pay the pool company and they file a lien. Title insurance can not protect you from a future situation but can insure that up to that time you took title to the property it is free and clear, an issue the policy as protection. It is a one time charge and protects you for the face amount of the policy issued.

who usually pays for title insurance