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What buyers need to know about title insurance

On Behalf of | May 25, 2017 | Real Estate

If you are purchasing a home in the Greensburg, Pennsylvania area for the first time, the process can be a bit overwhelming. There are a lot of documents and jargon involved that many people have never heard before. At Schimizzi Law, LLC, we work hard to make sure that our clients feel comfortable and knowledgeable about every step of the transaction.

You may have heard about title insurance but are not sure what it is exactly. According to Zillow, during a real estate transaction, a title company is usually retained to make sure that you are purchasing your home with clear title. This means that there are no unresolved issues on the property that could come back to haunt you later.

One thing the title company does is search through public records to make sure that no else can stake a claim on the property you are purchasing. This could be anyone from a prior owner to a bank to a utility company that is owed money. This step is important to prevent any surprises for you down the road.

The title company also provides you with a title insurance policy. If you are using a bank or other mortgage lender to finance your purchase, purchasing title insurance will likely be mandatory. One part of the policy covers the lender for the amount of the loan in the event that a title issue arises in the future. The other part covers your interest in the property as the owner. For more information on purchasing your first home, please visit our web page.