CONSUMER RESOURCES

What is Title Insurance?

If you've purchased a home you may be familiar with the benefits of title insurance. However, if you are a first-time homebuyer, you may wonder, "Why do I need yet another insurance policy?" While a number of issues can be raised by that question, we will start with a general answer. The purchase of a home is one of the most expensive and important purchases you will ever make. Title insurance has provided protection to homeowners against financial losses arising from undisclosed liens, errors in public records and unresolved property disputes, to name a few, for over 100 years.

What does a Title Company do and why do I need one?

The title insurance industry, while often misunderstood, is a critical segment of a real estate transaction. Without the dedicated work of thousands of title agents, the process of buying and selling a home would be far more complicated and confusing for all parties involved. The title company will facilitate and close the transaction in compliance with the agreed upon contract terms, existing laws, and according to lender instructions. We thoroughly examine the title back 60 years or more, research tax records, liens, judgments, municipal charges and clear any issues on title prior to issuing a title insurance policy. We are required to report property sales to the Internal Revenue Service as well as to the State Comptroller offices, collect millions of dollars in unpaid tax liens, judgments, past due child support and condominium dues. We pay water bills, credit cards and even car loans. We must comply with tax collection on foreign sellers despite the complexity of the regulation.