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Title insurance — what is it, why have it?

On Behalf of | Oct 3, 2021 | Residential Real Estate

The last thing anyone wants when buying or selling property in Massachusetts is for issues with the title to arise. Unfortunately, it happens, and when it does, it can delay the sale or cost all parties involved a lot of money in the end. Thankfully, title insurance exists to help cover any losses associated with a title defect.  

Who can buy title insurance, and what exactly does it cover? 

The two types of title insurance available are lenders and owners. Lender’s title insurance is purchased by the buyer when requested by the lender to protect the lender. Owner’s title insurance is also purchased by the buyer, but it is for the buyer’s personal protection. Both types of title insurance protect against damages or losses resulting from title defects, liens or encumbrances — such as: 

  • Flawed records 
  • Outstanding lawsuits 
  • Outstanding liens 
  • Fraud 
  • Incorrect signatures 
  • Ownership by another person 

If title insurance is wanted, the closing agent is responsible for initiating the purchase. Funds for the policy are typically put in escrow and paid out at the completion of the home sale. A title insurance policy can cost a couple hundred up to several thousand dollars. While it may seem like a lot, the benefits of having this protection are worth it.  

Need help filing a title insurance claim? 

When a title defect does arise, curing the defect can take time, even with title insurance. Massachusetts residents who find they need help filing a title insurance claim can turn to legal counsel for assistance addressing the matter in a timely manner. With the right help in one’s corner, the issue can be put to bed as quickly as possible.