What is title insurance?
Title insurance is insurance against financial loss from defects in title on the property due to flaws in record searches, forgeries, fraud or sometimes even strange circumstances like unknown heirs or invalid divorces. There are two basic types of policies purchased for residential properties; the owner’s policy and the lender’s policy.
The Owners Policy is typically paid for by the seller and given to the buyer. This is what will protect you as the new owner of the property. It will ensure free and clear title from the seller.
The Lenders Policy is typically paid for by the buyer and given to their lender (if there is one). This ensures the lender that they have first lien position.
These policies are only paid for once. You do not have to renew and they do not expire until you no longer retain an interest in the property.