What is Title Insurance and why do I need it?

Title insurance insures your home against financial loss. It insures against:

Past liens

Past mortgages

Previous owners claiming ownership

Past taxes

Conflicting wills

Encumbrances or judgements

Incorrect signatures and fraudulent documents

Who pays for title insurance? Typically a seller pays for title insurance and selects which company they wish to use. A buyer can pay and select the title company if they want to. Often investors doing 1031 exchanges will choose to select the title company for ease of transaction information.

Contact me if you have any questions on title insurance and other real estate transaction fees. As part of my Market Analysis I always give a seller’s net estimate of fees and proceeds.