What Is Title Insurance and Why Is It Important?
Title insurance protects homebuyers and mortgage lenders from the costs associated with some major financial or legal issues. However, title insurance is not quite the same as many other forms of insurance, which typically cover future potential events. Instead, title insurance is a one-time purchase that covers past events and title issues that are not known to you, your lender, and your real estate team at the time a property is sold.
Title insurance helps protect your home purchase or sale from anything that has already happened that might nullify the transfer of title — that is, the right to legally own the property involved in the transaction. Common title issues include undiscovered liens, improper or falsified documentation, and unpaid taxes.
Title insurance is part and parcel of most real estate transactions in Illinois, and has become more common nationwide over the last several years, according to market research.
