Q) What is Title Insurance?

A) Title insurance insures your rights and title to the property you are purchasing. It ensures that you have 'marketable' title. A title insurance commitment and subsequently, a policy is issued to the 'insured'.

Q) Why do I need it?

A) Generally, you need title insurance to guarantee to you that there are no liens or encumbrances on the property you are purchasing. It insures you against loss or damage from defects of title to the property or loss of the property due to existing liens at the time of insuring.

Q) Who pays for it?

A) Your contract dictates who will pay for the title insurance and other related fees.

Q) Is it a one-time charge?

A) Yes, it is a one-time charge. The insurance is good for as long as you own the property. If you choose to re-finance your property, your new lender will require that a new title insurance policy be issued to insure them. (Many times this can be done with 're-issue rates', a substantial savings.)

Q) Who does the closing?

A) Usually the title company holds the closing in its office and it is handled by a 'closing agent'. Many closings are also conducted as 'mail-aways', and are handled via overnight courier.

 

Q) Do I need an attorney to represent me? Is it required?

A) It is always a good idea to have an attorney represent your interest. No, it is not required, but a title insurance representative cannot give legal advice. A real estate attorney is on staff to assist in resolving legal issues.