What is Title Insurance? Title insurance is an insurance policy issued by an Insurance Underwriter, guaranteeing a buyer’s ownership and peaceful enjoyment against claims, liens or judgments associated with a property after the purchase is completed. Such insurance protects against losses arising from events occurring prior to the date of the policy. Unlike Real Property or Casualty Insurance where coverage starts on the day a policy is issued, title insurance being Indemnity Insurance causes coverage to stop on the day the policy is issued. Its coverage extends backward in time and guarantees that events prior to your ownership do not result in losses to you. Who pays for title insurance? Within the contract there is a section to select who will pay for the owner’s policy. Where most real estate buyers and sellers once let their agents select the title insurance company for them, today’s customers are highly educated and experienced in measuring the power of their investment. Some would have you believe that generally the right to choose a title company rests with the party paying for such service. In reality however, that right was, is, and will always remain a negotiated one. As the buyer you have the right to shop title companies and decide what is best for you. As the seller, if you are paying title insurance, you also have the right to shop. Some real estate agents want to select the title company for you. It is recommended that you do your due diligence and research the title company that works best for you. Once you are under contract, there will be timelines to adhere to. If you have a realtor your realtor will assist you in meeting these timelines. We suggest if you do not have a realtor, creating a timeline check list. Keep in mind, the contract is a legal and binding agreement. You don’t want to miss a deadline. An example of a deadline is depositing the earnest money with the title company. Once the closing title company has the contract and closing request, you will need to provide important information to the title company. Such as your marital status. If only one name is on the contract but you are married and wish the spouse to be on the deed, you will need to inform the title company. Will this be your primary residence? Are you obtaining a loan? If so, the title company will need the lender information. We at the title company will guide you through the entire process and are available for any questions you may have.
