What is and how much is title insurance

You would think in this day in age that most if not all claims of title on had been resolved by now. I mean we are not living in the wild wild west anymore, but unfortunately that is not the case. Old claims and disputes on land still happen. Yes they are few and far between, but they still happen.

This is why in almost all real estate transactions these days require a title search and title insurance (99.9% that have a mortgage). A title search is just that. It is a search for old claims and the past transfers of title on a piece of property. Usually if there is an issue, it shows up here. But for the rare chance it does not, there is title insurance.

Now before you get all worried, the chances of you purchasing a home and later claim getting a judgement to move you off of your property are even more unheard of. It would probably be more of a lawsuit sort of thing. But this is what title insurance is for. It protects your and the lender against these sort of claims. If there were an issue, the insurance would kick in and pay for any damages much like insurance for anything else.

A title search and insurance cost vary somewhat from state to state, but to give you idea. A title search should be around $250 +/- and title insurance should between .05% to .07% of the purchase price ($500-$700 per $100,000).