Title Insurance provides protection for the named insured from loss caused by adverse claims made against the title to real estate. Such losses can be caused by various matters, including forgeries, liens for unpaid labor or materials used to improve the property, unreleased security interests, encroachments, violations of restrictive covenants, building permit laws, subdivision and zoning laws and supplemental real estate taxes, to name a few.
Lenders require title insurance to be purchased by the Borrower to protect their security interest in the property for the full loan amount.
A separate policy of title insurance protects the Purchaser’s interest in the property, up to the full purchase price. While McLain & Merritt, PC will do an expert title examination, there are many undetectable title issues that could cause severe financial and emotional loss. Owner’s title insurance is a very important and inexpensive protection for the Purchaser’s investment in real estate and should be purchased at the closing.