Title Insurance Information
When buying a new home it is important to for the title company to run a search on your property an provide title insurance on the new property. An article in Realtor® describes the purpose of title insurance is to protect your right of ownership from any mistakes or fraudulent claims against you owning the property that may have been made in previous sale. It could be something as simple as a spelling of a person's name or a mistake made in the identity of the property.
It is usually a one time cost and is normally based on the price of the new property. In most cases it is paid by the sellers, but you need to check with your Realtor® or title company because it can sometimes change depending on the state or county where the property exist.
The Realtors® magazine went on say that there are two types of title insurance. Lender title policies are drawn up to protect the interest on the lenders and the lender will probably require a policy and then there is a policy to protect you and those are called title policies.
You might want to check with your title company to see if a discount is available on the premiums of a policy if the home is a recent resale and not as much research will be necessary to bring the policy up to date.
RUTH BETHEM, ABR, CRS, GRI, Realtor®