What is title insurance and why should I purchase it?
“Title” refers to the legal ownership of a property. When you buy a house, the seller transfers the title to you giving you legal ownership over the house and the land it sits on.
Title insurance protects you from past problems related to the property—which become your responsibility once you are the owner. Prior title defects, such as a previous owner’s debt, forgeries, liens, and other claims of ownership, could end up costing you money (and may call your ownership of the home into question), even though you weren’t the owner at the time.
There are two types of title insurance policies you can purchase: an owner’s policy and a lender’s policy.
- Owner’s title insurance protects your equity in the property up to the amount of your purchase price
- Lender’s title insurance — which is required by most banks and other mortgage lenders — protects the lender up to the amount of the loan they provided
Before a policy is issued, a title search — the process of verifying the seller’s right to sell or transfer property ownership — must take place. This process aims to alert you to any problems with the title that need to be addressed prior to closing.
But sometimes even the most thorough title search misses something. As the new property owner, you’ll be responsible for any claims and legal fees if you’re not insured. Title insurance provides you with much-needed protection, security and peace of mind.
You’re in control when you choose titlegenius by Radian. With easy-to-use tools—from remote check capture to online notarization—titlegenius streamlines your homebuying experience and gets you through the closing process quickly and confidently.