Real estate glossary
Title insurance
Also called: Owner's title policy, Lender's title policy
Insurance that protects the buyer (and their lender) against covered problems with ownership that existed before the sale.
Title insurance covers losses from certain problems with the property's ownership history — for example forged documents, undisclosed heirs or recording errors — that existed before the buyer bought the home.
There are usually two policies: an owner's policy for the buyer and a lender's policy for the lender. Who pays for each depends on local custom and what the contract says; it varies even between counties.
What it means for you as a seller
Check the purchase agreement to see who is paying for the owner's policy — it is a real line item on your closing statement in many areas.
Related terms
- Preliminary title reportAn early report from the title company showing who owns the property and any liens, easements or other items affecting it.
- Grant deedThe document that transfers ownership of the home from seller to buyer; it is recorded with the county at closing.
- Seller closing costsThe fees and charges a seller pays at closing, such as commissions, escrow and title fees, transfer taxes and prorated bills.
Not legal or tax advice. These explanations are general information to help you follow your own transaction. Laws, forms and customs vary by state and county, and the terms of your own contract always control. For advice about your situation, talk to your real estate agent, a real estate attorney or a tax professional. Last updated .