Investment Creek
A title company provides an insurance product that guarantees that the seller has a right to sell a property by verifying that buyer can acquire it without anyone else having a claim on that property. Title insurance protects the buyer from any unreported liens on the property, unpaid taxes, forged transfers of ownership, and unreleased mortgages. Typically, there are two types of title insurance involved in real estate exchange process, owner’s title insurance and lender’s title insurance.
An owner’s policy is not required but is recommended as it protects the buyer. In many cases, the seller pays for the homebuyer’s title insurance at closing. The average cost of owner’s title insurance is about $1000 but varies by state and is dependent on the cost of the property.
Most lenders require borrowers to purchase this type of insurance as it protects the lender and secures a lien on the property. A lender’s policy provides no protection for the home buyer and is paid by the homebuyer.