Monday, November 11, 2019 / by Amy McLeod
Before you can own a home, or "take title" to a property, most lenders will require a title search of public property records to make sure there aren't any issues in transferring the property into your name.
For example, title issues can crop up due to liens on the property (say, from a contractor who did work on the house but wasn't paid), unfulfilled financial obligations such as unpaid taxes, or claims of ownership from a long-lost heir. In such cases, a home seller may not have the legal right to transfer ownership of the property.
To protect against any financial loss, two types of title insurance exist: lender's title insurance and owner's title insurance. The lender's title insurance policy pays for the expense of researching a claim and any court costs incurred as a result of any disputes they unc ...