There are two types of title insurance policies. The owner’s title policy protects the buyer’s interest in the property. It protects the buyer from defects and liens that exist prior to their ownership of the property. The mortgagee title policy protects the mortgage lender for the amount of the loan they give on the property. This policy insures that your lender has a valid, enforceable lien on your property.
Unlike home or auto insurance, title insurance is a one-time cost that is paid at the time you purchase your home. The cost of an owner’s title policy varies as it depends on the sale value of the property when you purchase it. Additionally, it is important to know that the coverage continues for as long as you or your heirs own the property or for as long as you are liable for any title warranties you made when you sold the property. The cost of the mortgagee’s title policy depends on the amount of your loan and on whether it was purchased at the same time as your owner’s title policy. The mortgagee policy is effective for the duration of your loan and lenders will require you to buy a new mortgagee title policy if you refinance your home.
Our office can assist you with the purchase of title insurance when you purchase your home. Because we are a fee attorney office for Texas Title, we have attorneys on hand to help clear up any title defects or other title related issues that arise in a sale transaction.