What is title insurance?

Title Insurance is a type of insurance policy that protects owners of real estate from certain losses that might arise from defects in the title to their property. In Massachusetts, title insurance is typically purchased to guarantee the validity of a title to a property when a purchase or loan is being made. Title insurance covers the owner of the property if a dispute arises over the legal ownership of the property. It also protects the owner from any liens or claims that may have been placed on the property prior to the transaction. Title insurance ensures that the insured party is protected from any hidden defects in the title to the property. This could include any past claims, liens, or judgments that may have been attached to the property. If a problem with the title is discovered, the title insurance company will pay the costs to defend against or cure the defect. Title insurance also provides coverage for any legal costs incurred in defending or settling title disputes. Title insurance is a safeguard against any legal issues that may arise from future ownership of the property. It ensures that the owner has the right to ownership of the property and is not subject to any hidden claims or defects on the title. In Massachusetts, title insurance is usually required when buying or financing a home. The cost of the title insurance policy is usually paid at closing and can range from hundreds to thousands of dollars depending on the size and complexity of the transaction. Title insurance is an important part of any real estate transaction and helps protect the buyer or lender from any potential risks associated with the title of the property.

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