Real Estate 101 - Title Insurance


	What is Title Insurance?
	What is Owner's Policy?
	What is Lender's Policy?
	When to order title insurance?
	Who orders title insurance?
	How to order title insurance on planetRE?
	How much is title insurance premium?
	Who pays the title insurance premium?
	When is the title insurance premium paid?
	What is Title Search?
	What is a Preliminary Title Report?

What is Title Insurance?
Title insurance is a form of insurance that guarantees an owner's claim to a property. It insures the title to real estate for buyer (Through Owner's Policy) and for lender (through lender's policy) against loss arising from defects in the title.
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What is Owner's Policy?
Owner's Policy is a form of title insurance that protects the property buyer. This protection is against title problems arising from competing claims to the property, liens, mortgages, or judgments. This policy covers legal challenges, as well as refunding the value of the property in extreme circumstances.
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What is Lender's Policy?
Lender's Policy is a title insurance policy that protects the mortgage lender from default relating to the title. Lender's Policy is usually required by banks issuing mortgages. It provides no protection for the actual property owner, though, which distinguishes it from Owner's Policy.
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When to order title insurance?
Title insurance is usually ordered right after the acceptance of the real estate contract.
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Who orders title insurance?
Title insurance is ordered by one of the agents. Which agent, listing agent or buyer's agent, orders depends on what is customary in your area.
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How to order title insurance on planetRE?
With a few efficient steps on planetRE an agent will be able to order title insurance from any title insurance company of choice. planetRE enables an agent to order title insurance electronically.
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How much is title insurance premium?
Title insurance premium is a one time fee, that is calculated based on the purchase price. Please ask your agent for an estimate of your closing costs, including title insurance premium.
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Who pays the title insurance premium?
Whether the buyer or seller pays for the title insurance premium depends on what is customary in the area. Whoever pays for the title insurance is ultimately decided by the real estate purchase contract between the buyer and seller.
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When is the title insurance premium paid?
The Title Insurance premium is charged only when you close the sale of your home. For some reason if you are unable to close the sale of your home, there will not be any Title Insurance premium charged.
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What is Title Search?
Title Search is a review of the public records generally at the local courthouse, to make sure the buyer is purchasing a house from the legal owner and there are no liens, overdue special assessments, or other claims or outstanding restrictive covenants filed in the records, which would adversely affect the marketability or value of title.
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What is a Preliminary Title Report?
A preliminary title report is a report generated by the title company, upon ordering title insurance policy, that confirms that the seller is the legal owner of the property and lists the liens, easements, as well as other claims that are recorded on the property.
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