The Most Common Title Questions (Answered Simply)
Buying or selling a home is one of the biggest financial decisions you’ll ever make, and with it comes a lot of paperwork and a few confusing terms. One of those is “title.”
If you’ve ever wondered what title insurance is for, why it matters, or what exactly a title company does, you’re not alone. We’ve put together answers to some of the most common title questions, explained simply and without the jargon.
1. What is a “title,” exactly?
A title is your legal right to own a property. It proves that you’re the rightful owner and that no one else has a claim to it. Think of it as the official record of ownership, similar to a car title but for your home.
2. What does a title company do?
A title company does the behind-the-scenes work to make sure your ownership is secure. That means:
Researching the property’s history to confirm it’s free of legal issues
Clearing any liens, unpaid taxes, or ownership disputes
Issuing title insurance to protect you and your lender from future claims
In short, we make sure the home you’re buying truly becomes yours in a safe and legal way.
3. Why do I need title insurance?
Even after a thorough title search, unexpected hidden issues can surface, such as a missing signature, an unpaid contractor, or an unknown heir claiming ownership. Title insurance fully protects you as the buyer and your lender from financial loss if something like that ever comes up. It’s a one-time cost that gives you long-term peace of mind.
4. What’s the difference between owner’s and lender’s title insurance?
Lender’s policy: protects the bank or lender’s interest in the property until your mortgage is paid off
Owner’s policy: protects you, the homeowner, for as long as you own the property
Most people get both, and the good news is that the owner’s policy is a one-time purchase that lasts a lifetime.
5. What’s a title search, and why does it take time?
Before closing, a title company conducts a title search which is a detailed review of public records, deeds, and court documents related to your property. We’re checking for things like:
Unpaid property taxes
Outstanding mortgages
Easements or boundary issues
It can take a few days to complete, but it’s a vital step to ensure the clearing of all open items are address for your closing to smoothly with a peace of mind.
6. Can title issues delay closing?
Sometimes they can, but that’s why you have us. If we find something like a lien or an old mortgage that was never released, we work quickly to resolve it before closing. Most title issues are fixable with the right documentation or communication with the parties involved.
7. What if I’m refinancing? Do I need title insurance again?
When you refinance, your lender will likely require a new lender’s policy since it protects their updated interest in your home. However, your original owner’s policy still protects you, so there’s no need to buy another one.
Final Thoughts
Title insurance may not be the most exciting part of buying a home, but it’s one of the most important. It quietly protects your biggest investment and ensures your ownership is secure.
Whether you’re buying, selling, or refinancing, New Door Title is here to make the process clear, simple, and stress-free.
*The information provided is for general purposes only and shouldn’t be taken as legal or financial advice. Please consult a professional for proper guidance.