Title insurance
A one-time policy that protects against title problems that show up after closing. There are two kinds: one for the lender and one for the owner. Paid at closing.
Your Room opens on going under contract and closing, with the offer and everything before it already ticked.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.
See how it worksWhere this comes up in a sale, and what follows
- Settle repairs (comes before)
Part 1 of 4
Why a seller cares
It protects against claims on the property from before the sale: an old lien, a missed heir, a bad deed. Who pays for the owner's policy is a matter of state custom and the contract, and it is a real line on the settlement statement.
Part 2 of 4
A simple example
A title search misses a $9,000 contractor's lien from a previous owner. The buyer's owner's policy pays the claim rather than the buyer, which is why lenders insist on their own policy too.
| What turns up after closing | Who the policy protects |
|---|---|
| A lien from a prior owner | The buyer, under the owner's policy, for the price paid |
| A forged deed decades back | The buyer and the lender, each under their own policy |
| A problem the buyer created after closing | Nobody; title insurance covers the past, not the future |
A one-time premium at closing, for anything the search should have caught and did not.
Part 3 of 4
What people get wrong
That title insurance renews like home insurance. It is paid once, at closing, and it lasts as long as the buyer owns the home.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines title insurance in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.