Question: What is Title Insurance, why do I need it?

Steve’s Answer: Title Insurance is an insurance policy that you purchase to insure that you actually receive good title to the property that you are purchasing. It also covers you in certain situations, such as in claims of encroachment. Title Insurance is required by most lenders so if you are obtaining a mortgage, it will not be an option.

Getting title insurance is one of the standard steps home buyers take before closing on a home purchase. Imagine you and your family have been searching for a home for months. Your wife finally agrees to let you have the den with the smaller backyard if you participate in a little kitchen remodeling.

Your happy to oblige because you love HOME DEPOT and you are tired of house hunting. You go to close and the seller has a Lien on the property and is not clear and free to sell. Uh ohh. This is where having a title insurance policy will save you time and possibly a home.

Title insurance is recommended  for the buyer because it protects you and the lender from the possibility that your seller doesn’t — or previous sellers didn’t — have free and clear ownership of the house and property and, therefore, can’t rightfully transfer full ownership to you. You may not need to exercise this claim of insurance but the value on what you stand to lose if you go without coverage is high — you could outright lose the home