When you’re buying a home, it’s easy to focus on the property itself, however, protecting your ownership is just as important. That’s where title insurance comes in.
What is title insurance?
Title insurance protects buyers from financial loss due to issues tied to the property’s past ownership. Before closing, a title search is completed to uncover problems such as unpaid liens, recording errors, boundary disputes, or ownership claims. If something is missed and later discovered, title insurance helps cover legal costs and losses.
Why is title insurance important for buyers?
🏡 Protects your ownership rights.
💰 Shields you from unexpected claims or legal expenses.
📄 Covers issues that may not appear until after closing.
🔐 Provides long-term peace of mind for as long as you own the home.
What about the lender’s policy?
Most lenders require a lender’s title insurance policy as part of the mortgage process. This policy protects the lender’s financial interest in the property, not the buyer. It remains in place until the loan is paid off or refinanced.
Buyer’s (Owner’s) Policy vs. Lender’s Policy:
• The lender’s policy protects the bank
• The owner’s policy protects the buyer
• The owner’s policy is optional but highly recommended
Title insurance is a one-time cost paid at closing that provides protection for years to come.
It’s a small investment that can prevent major problems down the road.
Always consult with your real estate professional and closing attorney to understand your title insurance options when purchasing a home.
Mark Montross
Catamount Realty Group
85 Prim Road Suite 202
Colchester, VT 05446
802–825–1353
[email protected]
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