Title Insurance Fundamentals

As a real estate law firm, Michna Law Group is well-versed in all aspects of the home buying and selling process. Oftentimes, one of the more overlooked yet vital pieces of this process is title insurance. But what is title insurance?

Essentially, there are two types: lender’s title insurance and owner’s title insurance.

Lender’s Title Insurance

Lender’s title insurance protects your loan lender against any title dispute that may arise pertaining to your property. For example, if there's an issue in the home closing process, another party may claim ownership of your home. Title insurance basically puts a stop to that claim.

Title insurance granted by the title search company is used to protect the title, or ownership, of the property against unpaid mortgages or legal judgments. In the event that someone files a claim against your property, title insurance provides the lender with legal protection. In addition, any court fees and related costs are covered.

Owner’s Title Insurance

Meanwhile, homebuyers can individually purchase title insurance to protect their rights as a homeowner. Usually referred to as owner’s title insurance, this variation protects the property owner from potential liens and ownership disputes held against the property. In doing so, owners are offered all the same protections in the event of a claim or judgment against your property.

Along with protecting homeowners after the fact, many title companies conduct a title search before granting insurance. By doing so, title insurance companies can gather information pertaining to title defects in advance. Lastly, this information also entails history pertaining to the property’s ownership.

For nearly 25 years, Michna Law Group has closed on homes throughout the Chicagoland area. In doing so, our business has familiarized itself with numerous national and local title insurance agencies.

For more information on title insurance, contact Michna Law Group by phone at 847.446.4600 or by email at BJM@MichnaLaw.com.