| Title insurance |
Transfer of title from one owner to another can take place between the parties without any proof of ownership. However, a purchaser would be buying a ""pig in a poke"" because he would have only the seller's word that title was clear and free of liens. So the seller usually provides the buyer with an Owner's Title Insurance Policy, and the buyer provides a policy for the lender. This protects the purchaser and the lender against any errors in the public records, and insures against threats to title which may arise due to fraud, forged deeds, undisclosed or missing heirs, misrepresentation of marital status, or any other situations involving a possible challenge to title to your home. Unlike hazard insurance for your home, title insurance has a one-time premium, paid when the policy is issued, and it protects your investment as long as you own the property.
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