Title Insurance: What it is and Why You Need it


Filed under: Home Buying Tips


Title insurance is something that is required on most real estate transactions, but many home buyers have no idea what it is or why it is necessary. Today’s video explains this mysterious insurance that actually covers the past. It is common for me to hear the same questions from my clients, and title insurance is a topic that comes up often.

My Experience with Title Insurance

Title insurance is a topic that hits home for me because of a personal experience that I had. In the late 90’s, I was working with a company that was selling Comparative Market Analysis (CMA) reports. This experience transitioned me to doing title reports. Business was going great, and I was doing everything that my bosses were telling me to do.

Even though everything was going great, I remember asking the same questions to myself every day: why am I selling insurance that actually insures the past? Fast-forward 20 years, and here we are today. I now understand a lot more about title insurance, and I can see that it is essential.

What is Title Insurance?

In the simplest explanation, title insurance is making sure that when someone is buying a house, they take clear ownership of that house without the baggage. It seems like there can be a clear transition with the transaction, but there are issues that might come up.

Some potential encroachments or liens might be out there against the house. These factors could cloud your title. If you buy a house without title insurance and something comes up, then you are left to take care of the issue on your own. It doesn’t matter that the problem was from the previous homeowner.

In most cases, there is nothing to worry about when you are buying a home. But, there are situations when these title issues pop up, and the insurance will ensure that you don’t have to face the financial consequences of these old problems.

If you have questions about title insurance or any other fees that come from buying a home, I’m always here to answer your questions. Please share or like this video if you found value in the information!


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