Title Insurance

What is title insurance?

Title is the legal right to own your home or other property. Title insurance provides protection against problems that exist when you buy your property and could affect your ownership rights in the future. Examples of problems include: liens on the property, unpaid property taxes, fraud, or an unknown heir who makes a claim on the property. You only pay for title insurance once, and it provides coverage for as long as you own the property. Lenders typically require title insurance when you get a home or other real estate loan. There are two types of title insurance policies:

Owners policies – protects the property owner. The price of the title policy is usually part of your “closing” costs. The closing is the time when all the papers related to the property sale are signed and explained. This usually happens at a title agent’s office.

*️⃣  This only covers the value of your property at the time you buy it. It does not cover any increase in your property value unless you buy extra coverage.

Lenders or loan policies – protects the lender’s interest.

*️⃣  Lenders will require you to buy a new loan policy if you refinance your home. The new lender policy replaces the old lender policy. You will get a premium discount on the new policy if you refinance within seven years of your first loan.

Owners and lenders policies are sold together at the closing if a loan is involved.

Terms to Know

Closing costs – the amount you pay to complete a property sale or purchase. Closing costs may include a down payment, taxes, fees, title insurance, and real estate commissions.

Heir – a person with a legal right to inherit property.

Lender – an organization or person that lends money. For example, a bank is a lender.

Lien – a right to keep possession of property owned by another person until a debt is paid off.

Premium – the amount you pay for title insurance.

Policy – a contract between you and the insurance company. The policy tells you what’s covered and what the insurance company is required to pay.

Our Office

Barbara Jordan Building

1601 Congress Ave., Suite 3.500

Austin, Texas 78701