Title Insurance is showing up more and more. Some lenders require Title Insurance, and many sellers want to provide Title Insurance in lieu of an RPR and compliance.
But what is title insurance, and what does it actually do?
Title insurance is a policy of insurance with a one-time-only buyer's premium of about $250. Homeowners have title insurance coverage for as long as they own the property.
The major things that title insurance does are:
- Protect against unknown title registrations
- Protect against fraud
- Provide coverage against intervening registrations that might show up in the current 8-12 week Land Titles registration time
- Provide coverage against enforced permit issues or enforced encroachment issues
Title Insurance is a useful supplement, but not a substitute, for an RPR and Compliance.