Title FAQs

Frequently Asked Questions

What is a title?

Title is your right to own or use your property. Title also establishes any limitations on those rights. In other words, title refers to the rights of ownership recognized and protected by the law regarding property. 

What is title insurance?

If you’re buying a home, title insurance is a policy that protects your investment and property rights for as long as you own your home. Though your Fortune Title professionals will do an accompanying title search, it’s important to know that some of these issues may not have been discovered yet. A title insurance policy eliminates any risks and losses caused by faults in the title from an event that occurred before you owned the property.

What are the two types of title insurance?

We’re glad you asked. If you’re taking out a mortgage to pay for your home, you’ll likely hear about a lender’s policy and an owner’s policy.

An owner’s policy is the best way to protect your property rights. Either the buyer or seller may pay for this policy. Ask your title professional how it’s handled in your area.

Your lender will likely require a lender’s policy. However, this policy serves only the lender’s financial interests. The buyer typically pays for this policy, but that varies depending on your location. Again, ask your title professional how it’s handled in your area.

What are some common issues that could be protected by title insurance?

Owner’s title insurance protects you from events that may have happened in the past. Title insurance differs from automobile, fire and flood insurance, which protects you from future incidents Some common losses include errors in the public record, liens, boundary disputes, unpaid taxes, hidden defects like missing heirs, forgery and fraud and other items that do not show up during the title search.

Why is title insurance so important?

Title insurance and the included title search done by dedicated title professionals like us remain the best (and ONLY) protections for property rights now and in the future. For lenders, it lowers their risk by ensuring the property they’re financing has a clear title. For homeowners, it provides peace of mind knowing that their property rights are protected. 

How often do I pay for owner’s title insurance? 

Just once. And it’s good for as long as you or your heirs own your home. Plus, the affordable fee is included in your closing costs. Your life will change over time, but your peace of mind won’t after you secure your property rights with the help of Fortune Title.

Want to know more? Ask us or visit homeclosing101.org from our friends at the American Land Title Association (ALTA).