A: Title insurance is insurance issued by a title company that protects an owner (and that owner’s mortgage lender) from lawsuits or claims arising from defective title. In non-legalease, this insurance will help protect you if someone steps forward after you purchase the home and claims a right to the property.

A title company is a necessity for closing! It performs the title search to ensure clean title is passed from seller to buyer, acts as an escrow agent and facilitates the closing process and makes sure the money goes where it is supposed to go, and issues your title insurance policy.