Buying a home is an exciting time for most people, but it can also be confusing and full of foreign terminology. Here we will focus on some of the most common terms used specifically related to the purchase of title insurance. To know more about title insurance terms you can https://www.clearskiestitle.com/estimate/.
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Basics: What is Title Insurance?
To begin, let's define the title of the insurance itself. Basically, it is a loss-prevention insurance policy that protects against legal defects in the title that has occurred prior to purchase.
You also cannot buy title insurance just anywhere. You will need to buy your policy from a licensed agent. Often, the bank or your mortgage lender will recommend titles to your insurance agent, but as a buyer, the choice of which company to use is yours.
Other Terms to Know
Escrow is a term with many different meanings. Relating to title insurance, escrow refers to the funds that you give as earnest money when you make a starting bid on the property.
These funds have been placed into a special account by your escrow holder, often a title insurance company, and will be released once all obligations related to the purchase of the property have been met.
Terms of Title Reports
One of the main tasks of the agency heading to Title Search, which is a thorough examination of public records to make sure the property, is legally available for sale. Once this is completed, you will receive the Title Report.