Why do I need title insurance?
A title search and examination ensures that all parties have a clear understanding of their interest before the transaction is completed. It enables them to resolve any potential defects and title claims before they result in losses. The policy insures the owner against loss caused by encumbrances of defects in the title.
How long does title insurance last?
Title insurance last as long as the insured has an interest in the property. For the buyer, the policy is in effect for as long as the buyer or the buyer’s heirs own the property. For the lender, the policy is in effect until the loan is paid in full.
How much does it cost?
The title insurance premium is determined by the amount and type of coverage to be provided. Unlike other types of insurance, the premium is paid only once.
Who pays for title insurance?
Typically, the seller pays for the title insurance premium that will protect the buyer’s title to the property. This is by custom, not law, and the buyer and seller may negotiate who will bear the cost. If the buyer is obtaining a loan to purchase the property, the buyer is responsible to pay for the lender’s policy.