Title Insurance Policy - My Mortgage Brokerage

Title insurance policy - An insurance policy that insures against loss due to defects of the title on real estate in which the insured has an interest as purchaser (the homeowner) and mortgagee (the lender), of up to the insured amount, for as long as the insureds remain interest parties.

Title Insurance is a policy which insures a property owner should a prior claim arise against the property after the purchase has been completed. Title insurance will also cover the lender should a question of ownership arise. When you are completing a refinance transaction many times you may be able to get issued a reissue rate (a discounted rate) on your title insurance if you have the original title policy from when you purchased the home. Ask your mortgage consultant or title agent about this to see if you may qualify.

There are two parts to every Title Insurance policy, a lender's policy and a owner's policy. The two policies are usually purchased together. Home buyers get a discounted rate when these two policies are issued simultaneously.

Title insurance companies only issue policies after title searches have been conducted on the properties. Title search is a process where a title company goes through the records of the local county clerk's office to determine the legitimacy of the chain of ownerships on the property.

The title company handles the title insurance fee and the calculations of how much the fee is, based on their title insurance provider. The title insurance provider is actually the one that provides the insurance, not the title company.

Protects you up to a certain amount against any loss coming from a claim against your property, due to a mistake in the title. A lender's title policy does not protect you. Your coverage may be bought to protect your equity in the property.

When refinancing your home it is actually the homeowner that pays for the lenders title insurance policy.

When you purchase a property, there is title insurance for both the lender and you as a new owner.

Title Insurance protects the current owner or buyer of a property from defects in title. In a purchase transaction this is usually paid for by the seller. Lenders usually require this on all real estate financing transactions.

When purchasing a home the seller and buyer negotiate who is paying the charges for the title insurance policy. Often the fees are split in half. However it is the seller (in California) who determins which title company to use.