Value of Title Insurance
Why does title insurance exist?
In many states the title agent closes the real estate transaction, handles the escrow (acts as a neutral third party to hold and transfer the funds for sale), records the documents and issues the title insurance policy. Acting as the trusted third party, a title company or attorney works to make the title searches faster, better and more cost-effective while assisting in the fixing of title problems prior to the closing.
Title insurance was first issued in 1871. While other types of insurance coverage focus on possible future events and charge an annual premium – such as auto, flood or life – title insurance protects against loss from hazards and defects already existing in the title and is purchased with a one-time premium.
The title agent’s involvement in the transaction enables speed and efficiency when property is conveyed, or legally transferred from one owner to another. Because of title insurance, real estate is more marketable and thus more valuable. How can you be sure you’re choosing the right title company?
Sellers, buyers, borrowers, lenders and agents, attorneys, or employees of those persons – please confirm you are in compliance with your state DOI regulations before utilizing any resources, content or information from this site.