If you are refinancing your home or trying to buy a new home, at some point the term Title Insurance will come.
In short, title insurance, a policy that limits the risk to the buyer, the owners, and lenders of real estate transactions. Insurance not just protects all three monetarily in any agreement but eliminating the risk of obligation, title insurance, and settlement services has a positive effect for all parties involved.
At one time, if someone wants to buy the property, he would contact a lawyer to research the property. He or she will take a trip to the court and pull all the records necessary to ensure that the property is clear of tax liens, mortgages, liens and judgments city.
He will ensure that the person (s) selling the property is the true owner (s) of records and he also will examine the chain of title to make sure that the manner in which the owner acquired the property does not present a claim to the other individual or group.
Over time it becomes more necessary for some types of insurance to indemnify the Bank in case there are problems after closing.
When you take ownership of a piece of real property, you want to have a guarantee for a lot of different risks involved in this type of transaction. The title company verifies that for you.