What Is Title Insurance and Do You Actually Need It?
Title insurance protects against financial loss from problems with a property's legal ownership history — things like undisclosed liens, forged documents, or errors in public records that a title search might not catch. It's a one-time cost paid at closing, not an ongoing monthly expense like homeowners insurance. What a title search checks for Before closing, a title company researches the property's ownership history to confirm the seller actually has the legal right to sell it, and to identify any claims against the property — unpaid taxes, contractor liens, or old mortgages that were never properly released. Most issues get resolved before closing, but title insurance exists for the ones that slip through. Lender's title insurance vs. owner's title insurance Lender's title insurance protects the lender's financial interest in the property up to the loan amount. It's typically required by the lender as a condition of the loan, and the cost is...