Title and Title Insurance
Title insurance is an insurance policy purchased at closing, or shortly thereafter, that protects your property by insuring against future claims or losses due to title defects resulting from past events, errors and omissions. A home is the largest purchase most people make in their lifetime, and title insurance is a vital way to protect that investment.
Title insurance is unique, because it provides coverage for claims made in the future, or losses incurred in the future, resulting from title defects caused by something that happened in the past. Title insurance provides important protection against hidden risks, such as “stray” deeds, forgery, incapacity or incompetency of the parties, and other undiscovered errors.
There are different types of title insurance that protect you in different manners. Like other forms of insurance, most title insurance policies have “standard exceptions” for certain issues that are not covered. These standard exceptions vary from market to market.
Title insurance rates are regulated at the state level and with pricing based on the purchase price of the property. Premiums are paid only once, at the time of closing. Mortgage lenders will almost always require a lender’s title policy, paid by the buyer/borrower as a closing cost. When a lender requires title insurance, an owner’s title policy can be purchased for a nominal additional premium.
At Byrne Westmoreland, PLLC, we recommend that all buyers purchase an owner’s title insurance at closing. We believe that the owner should receive the same protection as their lender. As approved attorneys and agents for multiple major title insurance companies, our attorneys’ expertise can help protect your biggest investment.