Whenever a property is bought, sold, or financed, a reocrd of the transaction is usually recorded. Any liens and levies on the property are alos recorded.
A title insurance policy helps protect you against any such claims that might have been made prior to your ownership.
When you order title insurance, your title insurance company will also search the public records for any outstanding issues. Then they’ll issue you a policy that says if they missed anything, you’re covered.
Mortgage companies will almost always require a title insurance policy so that their interests are covered.
In most states, the buyer pays for title insurance, but in some states it’s customary for the seller to pay.
Title insurance pricing is regulated in many states, and will usually be set on a sliding scale according to the insured amount.
Consult with your Real Estate Agent, Mortgage Rep, and/or Title Insurance rep to lean more about pricing and how to get title insurance in your area.