Title & Escrow
Title Insurance
Cost Search
Hazards
Title vs. Home Insurance
Title Insurance protects against things that have happened in the past and is based on loss prevention. Because of that, a more significant percentage of the cost is spent preventing the problems from occurring. Explore each policy.
Owner’s Policy
Owner’s policies will protect the owners or their heirs for as long as they own the property. Coverage varies by policy.
Lender’s Policy
Lender’s policies protect the lender’s interest in the property. They cover the loan amount and last through the life of the loan. Most lenders will require a policy.
Limited Search
Limited searches include a title report of a residential property going back 10 years. A policy is NOT issued.
When your title company conducts a search, they review public records to uncover issues that could affect ownership.
These early steps in the process help identify and address risks.
Title search
Identifying risks
Eliminating risks that could be in a future claim
The offices of the recorders or registers
Deeds
Clerks of courts
Other officials
Title plant—a database of records
Second or third mortgages
Judgments
Liens
Special taxes and levies
Life estates
Easements
Right-of-Way
Street, sewer, or special assessments
Your owner’s title policy protects what is likely your largest financial investment, your home. One in three residential real estate transactions encounters a title issue.
Fortunately, most of these issues are resolved by the title officer before closing. Common title challenges include mistakes in public records, existing liens, easements, rights-of-way, life estates, and air rights. Other potential concerns can involve forgeries in the chain of title, claims by previously undisclosed heirs of former owners, subsurface rights, and future interests.
An owner’s policy offers peace of mind by safeguarding you from these hidden risks.
While both Title Insurance and Homeowners Insurance offer important protection, they cover different types of risk. Understanding what each policy includes and what it doesn’t can help you make informed decisions about coverage and cost when protecting your home and investment.
| Protects | Property Title |
| Risk | Eliminates Risk |
| Covers | Events in the Past |
| Cost | One time fee at close of escrow |
| Protects | Home |
| Risk | Prices Risk |
| Covers | Future Events |
| Cost | Monthly, Quarterly, or Annual Premium |
