The last process that takes place just prior to recording is the closing. At closing the Title or Escrow company provides the buyer with Title Insurance or an Owner's Policy. They insure that you have clear title to the property. If there are any problems later you can always go back to the Title Company and have them clear it up.
During the closing the Title Company also provides a Lender's Policy. The Lender's policy insures your mortgage lender that there are no liens or judgments against the property and that the property and the mortgage company will be in the first position. In other words, should you sell the property or refinance it, their mortgage gets paid first, before any other claims against the property. The Lender's policy is paid for by the Buyer.
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