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"WHAT IS TITLE INSURANCE? WHY DO I NEED IT?"

www.sapphiretitleescrow.com

Title insurance is meant to protect an owner or lender's financial interest in real property

against loss due to title defects, liens or other matters. It will defend against a lawsuit

attacking the title, or reimburse the insured for the actual monetary loss incurred, up to

the dollar amount of insurance provided by the policy. There are typically two types of

policies, owner and lender.

Title insurance is your only protection against loss or damage from any claims of

ownership that may still exist against the title to your property. A title search and

examination done on the property may show problems such as liens, unpaid taxes,

outstanding mortgages, or a judgment against the seller, boundary/survey disputes,

undiscovered wills, etc. Title insurance premiums are only paid once, unlike other

insurance premiums. It is usually paid at time of closing and will remain in effect as long

as you retain interest in the property.

OWNER'S POLICY

LENDER'S POLICY

An owner's policy, also called owner's title

insurance, is usually issued in the amount

of the real estate purchase. An owner's

policy is the only means of protxtion for a

buyer should a title problem arise. Such

problems include errors in deeds,

mistakes in examining records, forgery,

and undisclosed heirs.

Lender's title insurance is referred to as a

lender's policy and is usually based on the

dollar amount of the loan. It does not

protect the buyer, it only protects the

lender should a problemwith title arise.

The policy amount decreases as you pay

down your loan.