Title Insurance And Clear Home Title Know-How

Title insurance protects the lender and you as the owner from anyone who makes claims to the ownership of the house or liens against the house prior to your ownership. This is paid once, at the time of closing.

Though it may seem like the buyer would pay for his own insurance, the seller actually pays for the buyer's policy to protect them from any unforeseen circumstances in the home ownership's history called the "chain of title". This form of title insurance is usually referred to as the "owners title insurance premium."

The buyer, in turn, pays for a policy to protect the lender, usually called a "lender's title policy premium" as the lender has a legal claim on the property (also called a lien) until the mortgage is paid off. The rules can vary by state, so please check with your closing company or title insurance provider to verify.

Having the title company perform the title search ensures that you are purchasing a home with a clear chain of title and should provide you peace of mind in the future.

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