What is a title company?

Title companies conduct “title searches” looking at real estate records trying to find information about the property you are trying to purchase. Such information includes:

• Identifying the legal owner of the property
• Liens
• Judgments
• Unpaid taxes

After the search is complete, the title company will complete a “commitment of title insurance” on behalf of either the lender or the buyer. This step ensures the buyer is receiving a clear title on the property and any outstanding issues are resolved. Once these steps are done, the title company will use their underwriter to issue a policy of title insurance covering the lender and the buyer.

What is a title report?

The title report is prepared by the title company and discloses any information about easements, restrictions, ownership, and liens on the home.

Will I have to pay for title insurance every month?

No. Title insurance, unlike other insurance policies, is not billed as a monthly premium. It’s a one-time cost you pay at the time you purchase your home. The policy lasts for the time you and your heirs own the property.

Can the buyer pick the title company?

Yes. Mortgage companies can require a buyer to purchase title insurance, but they can’t dictate which company to use.

What does title insurance protect you against?

There are many things title insurance protects you against, but some of the most common are:

• Fraud
• Forged deeds, releases or wills
• Misinterpretations of wills
• Deeds by minors or by persons of unsound mind
• Deeds by persons supposedly single, but in fact married
• Liens
• Unpaid taxes
• Unpaid inheritance