Gilmore & Gilmore

Attorney TipsIssue No. 6 | March, 2022


What is Title Insurance?

Every time your property transfers ownership is an opportunity for an error in title to occur. Your new home could have a history of inheritance, foreclosure or bankruptcy and may have hidden title defects that have not yet been discovered. Title insurance protects your investment if your right to ownership should ever become challenged and is available for a one-time fee at the time of your purchase.

Why do you need an Owner’s Policy?

Your mortgage company will require you to purchase a Lender’s Title Policy at the time of closing to protect their interest in your property. The Owner’s Title Policy protects your interest. Owner’s Title Policy coverage will protect you for as long as you own your property, regardless of your mortgage balance, and can protect you from things such as improperly discharged mortgages, unpaid liens, forgery, fraud, missing heirs, or conflicting Wills. Some policies can even help settle encroachment issues that may come up after closing.

Tip: Advantages of Purchasing an Owner’s Title Policy at the time of closing:

– Many companies will offer a discounted premium if an Owner’s Policy is purchased at the same time as a Lender’s Policy.
– Not all title companies will allow for post-closing owner’s policies, and those that do will only consider post-closing policies on a case-by-case basis after a full review of title.
– If you are able to obtain a post-closing Owner’s Title Policy, it may not cover you for anything that came up between the time you purchased the property and the date you obtained the coverage. Owners who purchase post-closing policies should understand that they may not be covered for issues of which they were aware when the policy went into effect, and they will not be covered for issues they caused or created.
– The time and cost required to settle title issues can accumulate quickly. An Owner’s Title Policy can give you the peace of mind of knowing you are protected!

Have further questions? Please give us a call!

Gilmore & Gilmore, LLC Danvers | Newburyport | Boston 978-777-3480