What is title insurance and why do I need it?
Basically, title insurance assures that you have clear title to the home youre purchasing. A title search is the primary component of due diligence, a process that will be started either by your attorney, if you are using one, or by the title company you choose. The title search determines whether the seller actually owns the property and if there are any claims against it.
Title insurance protects against any title dispute that may arise over any particular property like your home. Before your closing, a title company researches your property’s title to ensure it was legally passed from buyer to seller, each time it was bought or sold. Title insurance further protects the lender against any illegal or fraudulent title transfers that may have occurred during an investigation. Title insurance is required to close on your home.
