What Is Title Insurance?

Title insurance is an insurance policy that protects a buyer against errors, omissions, or defects in the title of the property. This is an insurance that is usually purchased in conjunction with buying or selling a house and/or land. Usually, both the purchaser and the seller pay for the policy. Mortgage lenders generally require this insurance to cover its interests. It is a one time fee which is typically part of closing costs passed on to the buyer

Who Pays For Title Insurance In The State Of Oregon?

In the state of Oregon, the buyer must pay for the lender's title insurance policy. The seller pays for the owners title insurance policy.

What Does This Insurance Cover?

Title insurance covers errors or omissions in public records as well as covers the correction for problems that did not show up during the title search. The policy will pay for your legal fees if you need to go to court to defend your claim to property. And, if you lose the property, the insurance usually pays for your loss.

What Happens When I Buy Title Insurance?

When you buy a house, a title examination or title search is required on the property before it can be sold. A title search is a close examination of all public records that involve a deed to a piece of real estate. Basically, it is verified that all prior mortgages and other liens have been paid in full. This search uncovers potential rights that others may be able to claim to your property such as: mineral rights, easements, and right of ways or undisclosed heirs who may lay claim to your property. Anything that can caused your ownership to your property to be questioned is called a "title defect" or a "title cloud." These defects must be removed in order for the property of to be transferred to the new owner.

What Are Some Of The Things To Look For In Title Insurance?

It is important to note that title insurance policies may not include issues with easements, mineral rights, and some liens. It is important to discuss with your insurance broker exactly what you expect to be covered for when you are buying a new piece of property, and in the case of land, it is always important to ask about mineral rights, water rights, air rights, and easements.