Title Insurance protects you against covered title defects, like a previous owner’s debt, liens and other claims of ownership that may have been instituted prior to purchasing your home.

Loan Policy – Policy required by a mortgage lender to protect against title defects that could affect the lien of the lender’s mortgage.

Owner’s Policy – A separate policy that helps protect you against title defects that could affect your ownership rights.

Loan Policy – Effective for the life of the loan.

Owner’s Policy – Lasts as long as you or your heirs retain an interest in the property or remain liable for any warranties on the title.

Average cost of a Loan Policy: $3.50 per $1000 of loan.

Average cost of Owner’s Policy: $2.50 per $1000 of purchase price.

***The price can vary depending on property value and location, along with state regulations. ***

LIENS – Typically relate to the priority of a mortgage lien in relation to other such liens on the property and other types of liens attached to the property such as state or federal tax liens or other court judgements.  

BASIC RISKS - Fraud, forgery, undisclosed heirs, marital rights, recorded notices of zoning violations or building permit violations, and improper legal description of property.  

ENCUMBRANCES – Defects in insured title otherwise not excepted in the policy, such as missing interests, easements, or other recorded rights.  

ESCROW AND CLOSING ERRORS -Problems due to improper execution of closing documents improper recordings, and certain agent defalcations.