It is, without a doubt, one of the most confusing things I have to explain. What, you ask? It’s Title Insurance!
First of all; it’s helpful to remember that “title” is synonymous with “ownership.” Another helpful fact to understand is that title insurance – much unlike car, health or life insurances – insures against events that occurred in the past of the home you’re about to purchase and the people who owned it.
You take title, or ownership, to your new home at your closing. But what if there are defects – such as another person claiming an ownership interest or improperly recorded documents – lurking in the past? What if, in the past, the home was fraudulently…
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