See below to see how titles and title insurance works.
Title is your right to own or use your property. Title also establishes any limitations on those rights.
A title search is an early step in the homebuying process to uncover issues that could limit your rights to the property. If a title issue is discovered, most often your title professional will take care of it without you even knowing. After the title search is complete, the title company can provide a title insurance policy.
If you're buying a home, title insurance is a policy that protects your investment and property rights.
There are two different types of title insurance: an owner's policy and a lender's policy.
An owner's policy is the best way to protect your property rights. Either the buyer or seller may pay for this policy. Ask your title professional how it's handled in your area.
A lender's policy is usually required by the lender and only protects the lender's financial interests. The buyer typically pays for this policy, but that varies depending on geography. Ask your title professional how it's handled in your area.
Closing is the final step in executing the homebuying transaction. It is the process that allows the transfer of ownership to occur. Upon completion of the closing process, you get the keys to your home!
Owner's title insurance protects your investment in your property from certain future legal claims regarding ownership of your property. For a one-time fee, you and your heirs* receive coverage for as long as you own your home. The owner's policy also covers potential legal fees and court costs for settling claims covered by your policy.
Sometimes undiscoverable defects can come up after the title search. Under an owner's title insurance policy, you are protected against certain undiscovered errors in the title.
Title issues include unknown:
Unforeseeable title claims include:
For example, someone steals your identity and either sells your house without your knowledge or consent, or takes out a second mortgage on the property and walks away with the money.
The one-time payment for owner's title insurance is low relative to the value of your home. A typical title insurance policy costs around 0.5% of the home's purchase price.
Your owner's insurance policy lasts for as long as you or your heirs* own your property. Your life will change over time, but your peace of mind never will.
I use Horizon for all of my investment real estate deals. Krystle and the girls at Horizon are great. There is no deal too complicated for them. I have brought them many deals in various states of disarray over the years, and they always figure out how to get the deal to close by the given date. They are super responsive to questions, and always available to explain each step of the process. Highest recommendation!
My husband and I have been utilizing the services of Horizon Abstract for over a decade. As an agent, I’ve worked with multiple title companies in my 16+ years in the business. The staff at Horizon answer the phone! That, alone, is rare in this day and age. Horizon has also gone above and beyond to handle transactions that aren’t always simple or easy. For us, Horizon will always be "our title company".