You’ve seen the commercials and we all have our favorite one. Whether it is Flo from Progressive or the Geico Gecko, we’ve all seen what they’re advertising.
Insurance for your home, for your car, for your boat, for your motorcycle…the list goes on and on.
But did you know that you also need Title Insurance when you’re purchasing a home?
Themortgagereports.com defines Title Insurance as:
“Title insurance protects that right against anyone else who might try to claim ownership.”
They also said that “Title insurance covers risks such as fraud, leins (old debts secured on the home), omitted heirs (those who should have inherited an interest in the home but didn’t), and mistakes in the public record”
You can read more about the specifics here:
So, how do you get title insurance and how do you pay for it?
You can’t get title insurance from Flo at Progressive or Jake with State Farm, but instead from the Title Company you choose to work with.
There are two types of Title Insurance, one for the buyers and one for the lenders.
The buyers are responsible for paying both sets of title insurance and the cost of the title insurance is included in your “closing costs”.
So, as a seller, you are not responsible for covering the cost of title insurance.
Whoa! Pretty good information to be aware of wouldn’t you say?
That’s why choosing a trusted lender and title company is so important. If you don’t know which lender or which title company to go with, ask your real estate agent! I’ve dealt with plenty of lenders, plenty of title companies, and I’ve got plenty to recommend.