What is Title Insurance?

When purchasing a home with a mortgage, the lender requires you to purchase a lender title policy, included as part of your closing costs, to protect their investment in your new property in the event of any title problems after the sale. If you also purchase title insurance for your equity at the same time, you will be able to purchase your policy at a reduced cost. 
 
Do you need title insurance? The title company will research your title and is responsible for any errors they made for the next 3 years. However, there are many things they are cannot see in the chain of title – such as, unknown heirs that may have had a claim to the property. Some other items that are a trigger to purchase title insurance are if the previous transaction with this home including the use of a power of attorney, if the home has ever been in foreclosure, or is an estate sale. The title insurance policy you purchase will remain with you even after you sell the house in the future. 
 
For more information about title insurance talk to the experts at Hyde Title.  Contact Don Bazer at 225-752-320.