Title Insurance FAQ
Crossland Title Inc. is a Knoxville title agency providing full-service real estate title solutions. Crossland Title Inc. makes your closing seem effortless.
With more than 32 years of experience in the real estate and title business, owners Pam Rice and Beth Crox have built their reputations upon the virtues of personal service and integrity. They believe that reputation as an honest and reliable business is the recipe for success.
What is Title Insurance
Title insurance is a form of indemnity insurance. This insures against financial loss from defects in title to real property. Also, from the invalidity or unenforceability of mortgage loans. There are two types of title policies: Owners and Lenders. Lenders require fire insurance. Also, other types of insurance coverage to protect their investment. Nearly all institutional lenders require title insurance (lender’s policy). This is to protect their interest in the collateral of loans secured by real estate. Some mortgage lenders, especially non-institutional lenders, may not require title insurance. Buyers purchasing properties for cash or with a mortgage lender often want title insurance (owner’s policy) to protect their interest as well. A loan policy provides no coverage or benefits for the buyer/owner. Your decision to purchase an owner’s policy is independent of the lender’s requirement of a loan policy.
How Can Title Insurance Protect Me?
Does the Bank or Lending Institution Always Arrange For Title Insurance?
It usually does, but the lender only insists on a loan policy. The lender does not arrange for an owner’s policy that ensures an owner’s interest in the property. You could lose your equity if you do not have the Owner’s Title Insurance.