What you should know about Title Insurance

Real Estate Agent with Re/Max Affiliates 2011002043

What Should You Know About Title Insurance?

Closing day on a house is a stack of papers just waiting to be signed. One of the forms that needs a signature is a title insurance policy. This is the kind of insurance which protects both the buyer and seller from what happened in the past.

The house in question may be several decades old. It is quite possible that there were a number of owners of the house prior to the seller taking possession. What neither party may know is there may be an obligation from the past which has not yet been met. The policy coverage protects the buyer from any risk involved in a prior claim dispute.

Some of these claims may come from estates, documents which were authorized by an expired power of attorney, any mistakes that were the result of mistakes in the tax record, a divorce had not been fully completed, or outright fraud and misrepresentation.

The buyer may take ownership of the property only to discover that there is a claim on the territory made by someone else. It can result in some legal problems and possibly the need to pay an earlier claimant what is due this person. This is a primary reason why title insurance is so important.

What the title insurance company will do is check through the historical record of the house. This search can go back to the day when the house was originally constructed. Title insurance staff will look for any possible lien or claim which still exists.

Usually there is nothing to worry about. Past owners have gone through the title search themselves and old claims may have already been settled. Still, there may be some difficulty that has to be corrected.

The seller might not even know there is a lien on property. It may have been the result of an unpaid bill or some other expense. It can happen that the seller either forgot or did not notice a statement in the mail indicating a lien placed on the property. Whatever the reason, it is possible this claim will stop the transaction dead in its tracks. If that happens, the seller may want to take care of the prior claim immediately.

Title insurance is a cost that is the responsibility ordinarily of the seller. The new neighbors may be wonderful, but neighbor encroachment will happen and the title insurance helps protect against that.

Even something as simple as a mistake in a map is covered by the insurance policy. One nice thing about the policy is that it is a one-time only payment. The property is then covered until it is sold once again.

There is also a lender’s policy which is for the institution which holds the mortgage. This protects the lender in the event of any title problems. 

With all of this being said, there is a great deal of benefit to the title insurance for both parties. The seller is able to offer up his or her property in good faith.

There is nothing holding back the transaction, and everything can be finalized on closing. The title insurance companies inspection of the records and is any anxiety about the past.

Westerville Ohio Real Estate - Title Insurance 6The buyer also benefits enormously. There are no hidden surprises and the property belongs completely to him or her.

The premium is paid by the seller.

What is essential for both parties is that on the day of closing there is no evidence of a prior c laim on the property. With that, the final touches of the closing transaction can be conducted.

The title insurance policy is just one of the documents that needs to be looked at and signed on that close. Nevertheless, it is extremely important and provides superior protection.

Visit our website for more information on title insurance and real estate for sale in Westerville Ohio.

Comments (22)

Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

and welcome to ActiveRain, Dimitri....you'll enjoy participating on this platform.... keep those blog posts coming....

Aug 15, 2015 09:19 PM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

In California that depends on each county, 16 out of 30 CA counties the BUYERs need to foot the bill. 7/16 is split between buyer-sellers. One city is 50-50(Turlock).

Aug 15, 2015 11:03 PM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

Great information for your first blog Dimitri! Keep posting and welcome to Active Rain!

Aug 16, 2015 12:54 AM
Wayne Zuhl
Remax First Realty II - Cranford, NJ
The Last Name You'll Ever Need in Real Estate

Good morning Dimitri and welcome to Active Rain! Congratulations on publishing your first blog!



Aug 16, 2015 01:16 AM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Dimitri - Thanks for the very valuable information about title insurance.

Aug 16, 2015 02:07 AM
Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

i look at the policy limits of the line items and i am usually dismayed. money for little as i see it

Aug 16, 2015 02:53 AM
Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

i appologize however, for such a rude welcome. i should have welcomed you to AR, then capped on title companies. :)  sorry... and i welcome your futher posts. thanks and sorry mike (i just read a policy the other day) hence my negative outlook

Aug 16, 2015 02:55 AM
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale TahoeLauraRealEstate.com
Coldwell Banker, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Dimitri Zubrich - Great information to explain the benefits of title insurance.  I think both buyers and sellers will enjoy learning more about title insurance in your area!  Well done!

Aug 16, 2015 08:27 AM
Captain Wayne - Rowlett Real Estate School
Rowlett Real Estate School - Panama City, FL
Rowlett Real Estate School / Owner and Instructor

Awesome post.  Thanks for the info!  Keep up the good work.

Aug 16, 2015 01:19 PM
Captain Wayne - Rowlett Real Estate School
Rowlett Real Estate School - Panama City, FL
Rowlett Real Estate School / Owner and Instructor

Welcome to ActiveRain, it's great to have you aboard.  I look forward to reading your posts!

Aug 16, 2015 01:19 PM
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

Contact Dimitri Zubrich at (614) 316-3324 for OH Real Estate.

Aug 17, 2015 03:09 AM
Bob Haywood
McGraw Realtors - Owasso, OK

Here in Oklahoma the buyer pays for their own title insurance plus a lender's policy.  A seller can pay for it if the buyer is willing to close at the seller's title company.

Aug 17, 2015 04:31 AM
George Lawson
Moreno Valley, CA

Good afternoon, Dimitri... welcome to ActiveRain! Congrats on your first blog, I'm looking forward to all your future posts. Best of success in your business! 

Aug 17, 2015 05:55 AM
Kate Elim
Dockside Realty - Spotsylvania, VA
Realtor 540-226-1964, Selling Homes & Land a

Hi Dimitri...As mentioned, in Virginia the buyer generally pays for the title insurance both their own policy and the one for the lender. What many buyers do not realize is, is that there are two levels of coverage with different price tags for the buyer's coverage.


Aug 17, 2015 08:34 AM
Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

In our market (Anne Arundel County, MD), title insurance is a buyer cost - both the lender's and owner's. Most buyers opt for the owner's as well as lender's insurance. Discovering the different laws and customs across the country is just one of the many things you'll enjoy about Activerain... Welcome!

Aug 18, 2015 10:17 AM
Mery Fernandez Empire Network Realty Luxury Brokerage
Empire Network Realty INC. - Orlando, FL
The Rise of An Empire, Let's Build Yours!

Welcome to the world of Activerain, may your blogging  create a whole new chapter in your Real Estate Career.

Aug 22, 2015 03:11 AM
Olympus Executive Realty Inc.
Olympus Executive Realty INC. - Orlando, FL
Home Of The Top Producers

Welcome to AR, Congrats on your first blog, look forward to all your future blog post. Its a great place to share your Real Estate thoughts and experiences. 

Aug 22, 2015 04:07 AM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Dimitri - Many consumers don't seem to understand just how important title insurance is to protect them.

Aug 22, 2015 05:00 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Dimitri - Congratulations on your first post here in the Rain, and welcome to the community.

Aug 22, 2015 05:00 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Please know that the ambassadors, those with orange badges, are here to help and answer questions.

Aug 22, 2015 05:00 PM