{"id":352613,"date":"2017-06-01T16:26:08","date_gmt":"2017-06-01T21:26:08","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/consumer\/insurance\/title-insurance.html"},"modified":"2024-04-23T00:41:17","modified_gmt":"2024-04-23T05:41:17","slug":"title-insurance","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/insurance\/title-insurance.html","title":{"rendered":"Title Insurance"},"content":{"rendered":"\n
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Title Insurance<\/h1>\n
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\n By FindLaw Staff<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Real estate transactions can be complicated. For many of us, a home purchase<\/a> is likely the most expensive item we will ever purchase. Terms like escrow accounts, commission fees, closing costs, and mortgage loans become commonplace. Homeowners can also refinance their real property with a bank or mortgage lender following the home purchase.<\/p>\r\n

However, before purchasing a home, homebuyers need title insurance. They must ensure there are no issues with the title. For this reason, many prospective buyers<\/a> purchase title insurance. Read on to learn how title insurance works and why it’s a wise investment.<\/p>\r\n

What Is Title Insurance?<\/h2>\r\n

"Title<\/a>" refers to legal ownership and the right to possess something, whether a house, car, boat, or other item. When you have a clear title, you own the asset without any encumbrances<\/a> on ownership.<\/p>\r\n

A title agent searches public records to ensure there are no title issues with a home. They typically perform these duties alongside a real estate closing.<\/p>\r\n

Title insurance protects homebuyers and lenders from financial loss sustained from title defects. The most common type of title insurance is lender’s title insurance. The borrower purchases title insurance to protect the lender. The other type is an owner’s title insurance policy, which the seller purchases to protect the buyer’s equity in the property.<\/p>\r\n

Title Issues That Impact Real Property<\/h3>\r\n

Types of issues you could have with the title to your home include:<\/p>\r\n