What Does Title Insurance Cover?
May 30, 2018If you're one of the lucky Americans who has finally reached the goal of buying a new home, chances are good you will soon need to know what title insurance is and why you need title insurance. The decision to purchase a home is one of the most important decisions you will ever make in your life. While buying a new home is an exciting venture, it can also be stressful. The fun is finding the right house to buy. The stress comes when you get down to the negotiations of buying the house and to the closing. That's why it's important to have a title agency ready to help you navigate all the legalities and paperwork associated with closing on your dream house.
What Is a Title Agency?A title agency is a company that specializes in helping you manage all that goes along with buying a new house. A title agency provides title insurance, title research, and closing services to help ensure that closing on your new home is a stress-free process.
A title agency can be hired by anyone from a realtor, the buyer, the seller, or the lender. Sometimes there is more than one title agency involved in the closing of a home or property. Regardless of who hires the title agency, its presence throughout the home buying experience is beneficial to all parties involved.
Title Agency ServicesOne of the most important services provided by a title agency is that they provide title insurance. There is lender's title insurance and owner's title insurance. It's important to distinguish between the two because lender's insurance only protects the institution lending the money to purchase a home. In most cases, if there is a public lender involved, the lender will require lender's title insurance. Title insurance is the lender's assurance that no issues will arise with a title that will negatively affect the lender's investment should the buyer default on the loan. A lender will have lender's title insurance regardless of whether or not there is title insurance elsewhere. The lender's insurance in no way protects the buyer or seller, so always be sure to ask specifically about the type of insurance that will benefit you as a buyer. A title agency will be happy to answer your questions and will start the process of getting owner's title insurance for you.