What is Title Insurance and Why Do You Need It?

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A policy of title insurance warrants that the seller of real estate has clear title or provides compensation to the buyer in the event there are unknown or hidden defects or clouds on the title. Title insurance is typically applied for through the escrow or closing agent.

A policy of title insurance will protect the buyer from all potential contingencies that could compromise free and clear ownership. Some common examples include:

  • Purchasing property from a supposedly single person whose divorce is not yet final
  • Purchasing property from someone who received the real estate under the terms of an invalid will
  • Purchasing property that is subject to a tax lien, a contractor’s lien or child /spousal support liens