What Is Title?
A title is your ownership right to your property.
What is a Title Search?
A title search is a standard part of the home buying process that is conducted to uncover issues that could prevent your right to the property. Your closing agent reviews public records to see if there are problems or defects that could cause you legal issues.
What is Title Insurance?
If you’re buying a home, title insurance is a policy that protects your investment and property rights. There are two different types of title insurance: owner’s policy and lender’s policy.
- Type 1: An owner’s policy protects your property rights for as long as you own the home.
- Type 2: A lender’s policy is usually required by the lender and protects only the lender’s financial interests. The buyer typically pays for this policy, but this varies depending on geography. We recommend you ask an ALTA member how it’s handled in your area.
Why Should I Purchase Owner’s Title Insurance?
Purchasing owner’s title insurance is a smart decision because it’s the best way to protect your property from future legal claims.
What Does Owner’s Title Insurance Cost?
The one-time payment for owner’s title insurance is low relative to the value of your home. The typical owner’s title insurance policy costs around 0.5% of the home’s purchase price.
How Long Am I Covered?
Your owner’s insurance policy lasts as long as you own your property. Your life will change over time, but your peace of mind never will.
What Is Settlement?
Also known as “closing”; closing is part of the process by which ownership of a property is transferred from one party to another. Completing all of the steps necessary for the final contracts to be signed takes about a month, but in some cases, closing can take from 30 to 90 days.
What Are Closing Costs?
Closing costs cover the services required for a property to change hands. Services required to process the property transaction include title work, appraisals, inspections, document reparation, recording fees and other expenses.
7 Reasons Why Every Homebuyer Needs Owner's Title Insurance
Protects Your Largest Investment?
A home is probably the single largest investment you will make in your life. You insure everything else that’s valuable to you—your life, car, health, pets, etc., so why not your largest investment? For a one-time fee, owner’s title insurance protects your property rights for as long as you own your home.
Reduces Your Risk
If you’re buying a home, there are many hidden issues that may pop up only after you purchase your home. Getting an owner’s title insurance policy is the best way to protect yourself from unforeseen legal and financial title discrepancies. Don’t think it will happen to you? Think again.
Unexpected title claims include:
• outstanding mortgages and judgments, or a lien against the property because the seller has not paid his taxes
• pending legal action against the property that could affect you
• an unknown heir of a previous owner who is claiming ownership of the property
You Can’t Beat The Value
Owner’s title insurance is a one-time fee that’s very low relative to the value it provides. It typically costs around 0.5% of the home’s purchase price.
As long as you own your home, owner’s title insurance protects your property rights.
Homeowners insurance and warranties protect only the structure and belongings of your home. Getting owner’s title insurance ensures your family’s property rights stay protected.
8 in 10 Homebuyers Agree
Each year, more than 80% of America’s home buyers choose to get owner’s title insurance.
Peace of Mind
If you’re buying a home, owner’s title insurance lets you rest assured, knowing that you’re protected from inheriting most existing debts or legal problems, once you’ve closed on your new home.