Title Insurance Basics

Title Insurance Basics

A frequently asked question by home buyers is why should they purchase title insurance when the lender is already required to do so? In order to understand this it is helpful to know that there are two distinct types of title insurance policies offered by Greater NJ Title Agency.

Lender’s Policy

Typically this type of policy is required by the lender to insure the lender’s financial interest in the property. It is usual for the homeowner to bear the cost of the policy.

Owner’s Policy

This policy will assure that you are protected from any defects in the title – liens, fraudulent signatures, improperly settled estates, or other encumbrances to the title – that existed prior to purchasing your policy. In effect, an owner’s policy completely shields you from any significant litigation costs arising from title problems that can remain hidden for years despite the most exhaustive search of past property records. In this way, an owner’s policy provides you, the owner, with the peace of mind in knowing that the rights to your property are fully protected. Obviously this makes it a highly worthwhile investment. So whether you’re purchasing an existing home, a newly-constructed home, or even refinancing, Greater NJ Title possesses both the qualities and lengthy experience to execute your policy both efficiently and effectively.