Town Title

Title Insurance

The purpose of title insurance is to protect the owner and lender from possible title defects.

There are two types of title insurance:

1. Owner's Title Insurance is based on the purchase price of the property. It is a one-time fee that protects your ownership interest of a property. An Owner's Policy will insure your property from legal and financial claims. It protects the buyer should a covered title problem arise. Possible hidden title problems can include:

  • Errors or omissions in deeds
  • Mistakes in examining records
  • Forgeries
  • Clerical Errors
  • Undisclosed heirs
  • Unsatisfied mortgages
  • Unpaid property taxes
  • Unsatisfied Liens or Judgements

2. Lender's Title Insurance, also known as a Loan Policy, insures the Lender's interest in the property as to the priority of it's lien. This means it ensures that there are no other mortgages or liens recorded prior to their mortgage. Almost all lenders require a Loan Policy when a first mortgage is given. A Loan policy does not protect the buyer.


Fidelity National Title