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An overview of title insurance when it comes to owning a home.

When you buy your home, you receive a deed, which shows that the seller transferred their legal ownership to you. Legal ownership is called the “title.” Title insurance protects you in case there is any legal trouble down the line.

Title insurance is crucial when it comes to completing your home purchase. It protects you and the lender from the possibility that your seller (or previous sellers) don’t have total ownership of the house and/or property. If they don’t, they may not be able to transfer full ownership over—but title insurance prevents that from happening.

A couple of questions to ask about title insurance include “is the seller pushing a specific title company?” or “who do I trust?” If you pay for the title insurance, you should be able to select a company of your choice. Also, if you’re seeking advice from your lender, real estate agent and/or seller, turn to your lender. Your lender has your best interest, as they are guaranteeing a lot of money based on the fact that the property you’re using as collateral is actually yours.

There is a time you do not need title insurance. If you’re buying co-op housing, you won’t actually own any property—you’re actually buying shares in a corporation so you won’t need title insurance.

As far as price, what you pay for title insurance is based on where you live and of course the actual policy. Title insurance could cost you a couple hundred to a couple thousand dollars, depending on how much your home costs.