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Common Misconceptions
About Title Insurance
Buying a new home is one of life’s most gratifying “title” to the property. Title is your legal right to own
experiences. Making sure your right to own the it. Early in the home buying process, a title search
property is protected can be just as rewarding. is conducted to review the history of the property
During the process of purchasing your dream home, and uncover any issues that could limit your right to
you’ll hear two words you’ve probably never given ownership. Even after the most meticulous search of
much thought – title insurance. public records, there can be hidden title defects, such
as tax liens, forged signatures, claims by ex-spouses
As with the rest of the home buying process, and recording errors. These title defects can remain
title insurance can be difficult to comprehend. To undiscovered for months or even years after you
complicate matters, the topic is often surrounded purchase the home.
by misconceptions that keep home buyers from
recognizing its importance. To help you get a better There is only one type
understanding of what title insurance is and how of title insurance.
it protects your property rights, let’s analyze eight
common misconceptions: There are two types of title insurance
policies: an owner’s policy and a loan policy. An
Title Insurance offers only owner’s policy protects you, the property owner,
minimal protection. against loss or damage in the event there is a
covered title defect in your right of ownership to
When you purchase a home, you receive the property. If you’re obtaining a mortgage loan to
purchase your home, a mortgage lender will likely
require that you purchase a loan policy, also known
oldrepublictitle.com as a lender’s policy. This type of policy protects the
lender’s interest in the property until the mortgage
loan is paid in full. The loan policy provides no
coverage to the homeowner.
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04/2021 | ©2021 Old Republic Title | OR1509-DI | Old Republic Title is providing this information as a free client service and makes no warranties or representations as to its
accuracy. Old Republic Title strongly recommends consumers confer with their title insurer as underwriting requirements vary among companies and further, obtain guidance
and advice from qualified professionals, including attorneys specializing in Real Property, Trusts and/or Title Insurance to get more detailed, and current, information as to any