What is Title Insurance?
A title insurance policy is a contract insuring the insured’s “ownership” or “interest” in a specific piece of real property. A title insuranee policy insures the owner or others having an interest in the property against loss due to encumbrance, defective title or adverse claims against the title.
How long does Title Insurance last?
Coverage lasts as long as you or your heirs retain an interest in the real property and, in some cases, even longer.
Who pays for Title Insurance?
By custom, not law, the seller pays for the buyer’s Owner’s Standard Title Insurance Policy. Again by custom, the purchaser pays for the Title Insurance Policy insuring the lending institution providing the purchaser’s financing. Again this is by custom, and a buyer and seller may agree between themselves as to who should bear the cost of title insurance.