WHAT IS TITLE INSURANCE?
► Title insurance provides coverage for certain losses due to defects in the title that , for the most part, occurred prior to
your ownership. Title insurance protects against defects such as prior fraud or forgery that might go undetected until
after closing and possibly jeopardize your ownership and investment.
WHY IS TITLE INSURANCE NEEDED?
► Title insurance insures Buyers against the risk that they did not acquire marketable title from the Seller. It is primarily
designed to reduce risk or loss caused by defects in title from the past. A Loan Policy of Title Insurance protects the
interest of the mortgage lender, while an Owner's Policy protects the equity of you, the Buyer, for as long as you or your
heirs (in certain policies) own the real property.
WHEN IS THE PREMIUM DUE?
► You pay for your Owner’s title insurance policy only once, at the close of escrow. Who pays for the Owner’s Policy and
Loan Policy varies depending on local customs.