What Is Title Insurance?

Buying a house is exciting but can also be confusing. Here’s a basic overview of title insurance.

What is title?

The title is the evidence that the owner is in lawful possession of the property.

What does title insurance cover?

It protects against claims from defects such as:

• Liens
• Fraud
• Forgery
• Undisclosed heirs
• Improperly recorded documents

Who needs it?

Both buyers and lenders need title insurance to protect their interests.

How is a title policy created?

The title company performs a search, issues a preliminary report, resolves issues, and then issues the final policy.

What is escrow?

Escrow is the process where a third party holds funds and documents until the transaction is complete.