Frequently Asked Questions

Title insurance protects a real estate owner and lender from encumbrances, liens, or defects in the title of a property. These issues, if not addressed before the transfer or sale of a property, can result in loss or damage to the owner or lender, which can become costly and time-consuming to resolve. Unlike other types of insurance that insure against mishaps that may happen in the future, title insurance protects against possible losses caused by acts that happened in the past and prior to the transfer of ownership.

A title agency is a third-party representative that serves the best interests of everyone involved in the transaction by providing title insurance and closing services. • The title agency performs a title search of the property from the public records. • The agency will fix any issues that are found and clear the title so that the transfer can be completed. • A title policy is written which ensures that the title is free and clear of any and all encumbrances. When it is time to close, the title agency is the last stop in the process. The agency prepares the settlement statement and assembles all the documents for signing, including those from the lender, and meets with parties to close the transaction.

An Owner’s policy protects an owner from a number of encumbrances. A few examples are: • Unpaid mortgages or judgments against prior owners • Unpaid real estate taxes • False impersonation of the true owner of the property • Forged deeds, releases, and other documents • Invalid deeds recorded after the death of the owners • Deeds by supposedly single persons but who are legally married • Missed easements – giving one party the right to enter another party’s property • Missed heirs of former owners of the home or the land on which it is situated

Once purchased, the Owner’s title insurance remains in effect for as long as the owner and their heirs own the property.

Because the lender will have a financial interest in the property, a Lender’s Policy for Title Insurance protects the lender both financially and legally if an issue with the title of the property is discovered. To issue a lender’s title policy, all other liens, mortgages, or judgments must be paid in full and released at closing. This ensures the new lender is in the first lien position.

If the buyer is getting a mortgage loan, a title agency is necessary for the purchase transaction.

The cost of title insurance is a one-time fee that is paid for at closing. It is based on the amount of the purchase price and/or mortgage loan amount. Fees are set by the Ohio Department of Insurance.