Title Searches And Insurance Coverage

Closing is the last process that is conducted at the onset of switching the ownership of a piece of property. A title agent will conduct a title search. They may also offer insurance to a buyer or lender.


A deed is a piece of paperwork that reflects who owns a piece of property. If a mortgage hasn't been satisfied, a lender may place a lien on a piece of property. Deeds are recorded at a county courthouse. Prior to switching ownership of a piece of property, an interested buyer or a lender may request that a title search be conducted. A third party can be hired to perform the title search.

An agent will be assigned to conduct the search. The search involves determining if a seller can legally transfer the property to a buyer. For instance, if a seller has a lien on their property, they wouldn't be eligible to legally sell the land until the lien is satisfied. Because a title search will reveal that the property cannot be legally sold, a potential buyer's best interests and a lender's best interests are protected.


There are occasional issues that may arise that will result in a lawsuit being taken against a former property owner. If a lien wasn't discovered during a title search or a closing process, the parties involved in the sale will have likely signed off on the paperwork that is necessary for a property to switch hands. Insurance that a closing service offers will pay a monetary benefit to a lender or a buyer, in the event that a lien is discovered that will prevent a property from switching hands.

A title closing agent will typically discover if liens are present. There is a small chance that a problem could arise, however. A person who will be buying a piece of property will be the person responsible for obtaining insurance. When a closing agent is initially hired to perform a title search, the person who will be buying a home will be briefed about the insurance coverage that is available.

A new property owner can purchase a policy that will effectively protect them in the event that a sale falls through. The insurance will pay out money to a lender and to a buyer. This type of coverage prevents fraudulent activities from taking place during the real estate sales process.

Speak to a title closing service to learn more.