Buying a home is one of the biggest investments you will make. Title insurance helps protect that investment by safeguarding your ownership rights against certain problems tied to the property’s past.
Before closing, a title search reviews public records for issues that could affect ownership. But even a thorough search cannot always uncover every risk. A previously undiscovered lien, recording error, forgery, ownership claim, or undisclosed heir could surface after you purchase the property.
Protection Beyond the Closing Table
Title insurance is different from most insurance policies because it protects against certain issues that may have happened before you bought the home. If a covered title issue arises after closing, the policy can provide legal defense and financial protection, subject to its terms, conditions, and exclusions. Common concerns can include unpaid liens or taxes, public-record errors, fraud or forgery, and competing claims to ownership.
There are generally two types of policies. A lender’s policy protects the mortgage lender and is commonly required when financing a purchase. An owner’s policy protects the buyer’s ownership interest and equity in the property. A lender’s policy does not protect the homeowner directly.
Peace of Mind for Your Investment
A clear title search is an important part of a smooth closing, but title insurance adds an additional layer of protection if a covered issue from the property’s history is discovered later. Rather than facing an unexpected claim alone, you have coverage designed to help protect your rights in the property.
Have Questions About an Upcoming Closing?
Evergreen Land Title Services is here to help you understand the title and closing process with clarity and confidence. Contact us today to discuss your upcoming New Jersey real estate transaction.