Title Insurance -- Can Anyone explain?

**RE101** · 05-02-2010, 07:45 PM

Hi, I plan to buy my first house with my husband soon and am very inexperienced about the buying process and who pays what.

Can anyone explain to my what the title insurance is and why does the lender needs it? And how often do you need to buy it? Thanks so much!

**DCFawcett** · 05-06-2010, 01:11 PM

Originally Posted by RE101

Hi, I plan to buy my first house with my husband soon and am very inexperienced about the buying process and who pays what.

Can anyone explain to my what the title insurance is and why does the lender needs it? And how often do you need to buy it? Thanks so much!

The title insurance is 95% of the time the buyers resposibility.
You just pay it once.
Basically you are buying insurance for the bank
Protection for lenders and homeowners against financial loss resulting from legal defects or other claims against the property's title.

But Its for the bank not you because the house is theirs if you are paying off a loan
So part of borrowing money from them they require you to pay for their insurance and title searches.
It also covers title searches and liens to see if there is any liens or violations on the property that need to be taken care of before the sale...

Was that clear enough?

_DC Fawcett