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If you're in the process of buying a home, you have likely come across the term "title insurance." You might be wondering what it is and why it’s important. It's highly recommended that you work with a real estate attorney to ensure that you are aware of the nuances of title insurance before you close on your new home. To help you get a better understanding, take a look at the following guide.

What Is Title Insurance? 

Title insurance is a type of policy that protects homebuyers and mortgage lenders from financial loss if there are any issues with the title to the property. Essentially, it's designed to protect against any defects in the ownership history of the property. For example, if someone else claims to own the property or if there are liens or unpaid taxes on the property, title insurance can help cover the costs associated with resolving those issues. 

What Are the Different Types? 

Owner's policies are designed to protect the homebuyer from risks such as conflicting ownership claims or forgery. They're typically issued for the amount of the purchase price of the property and provide coverage for as long as the homeowner owns the property. Lender's policies, on the other hand, are designed to protect the mortgage lender. They're typically issued for the amount of the mortgage and only provide coverage for as long as the mortgage is outstanding. In many instances, lenders will make it mandatory for borrowers to purchase a lender's policy as a condition of the loan. A real estate attorney can help you navigate the process of obtaining either of these.

What Are the Benefits? 

The major advantage of title insurance is that it can provide peace of mind for homebuyers and lenders. It can help protect against financial loss if there are any issues with the title to the property, such as unpaid property taxes or unrecorded liens. Additionally, title insurance can help streamline the closing process by ensuring that any possible red flags with the title are spotted and dealt with before the sale is finalized. 


If you're in the market for a new home, it's important to work with a real estate attorney to ensure that you understand the ins and outs of title insurance. Dennis P. Faller, Attorney at Law, is an experienced professional who can help you navigate the complexities of the process. Based in Wapakoneta, OH, he’s been providing reliable legal services to the community for over 40 years. To schedule a consultation, call (419) 738-4578 or visit their website for more information.

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