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The short answer? Yes, you absolutely do need real estate title insurance!

There’s a lot of misconception that title insurance just isn’t necessary. Well, that’s not the truth—or even the best decision. When you obtain a loan to purchase a home, your lender will require a title insurance policy on the mortgage that protects them in the event of a title defect. If the lender is willing to protect its interest, isn’t that a pretty good sign that you should protect yours? Title insurance for the lender is called a Lender’s Title Insurance Policy. It ensures that the lender’s interest in the property is protected against any loss due to title defects, liens, or mistakes. But the lender’s title insurance policy protects just the lender. As a buyer you will need your own protection. This is called an owner’s title insurance policy. 

Purchasing owner’s title insurance is a matter of being safe rather than sorry. When you buy a house, the title of the property is transferred by a warranty deed. The seller is transferring you free and clear title, saying all is well. And if there is a title defect, you’d think that would be the seller’s responsibility, right?

Nope! If no owner’s title insurance is purchased, the problem becomes yours as a buyer. However, if a title defect pops up and you’ve purchased an owner’s title insurance policy, your policy will defend you.

At Title Junction we care about helping you stay informed throughout your real estate transaction. Have questions? Give us a call at 239.415.6574.

In case you missed it, check out our last Title Junction post: What is a Deed In Lieu?

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