12800 Long Beach Blvd.  Beach Haven Terrace, NJ

Licensed Realtor - The Van Dyk Group​

christine@lbireatlor.com

CELL:  (609) 954-9025

OFFICE:  (609) 492-1511  ext 121

FAX:  (866) 239-9141

"Your LBI Realtor"

Title insurance protects both real estate owners and lenders against loss or damage occurring from liens, encumbrances, or defects in the title, or actual ownership of, a property.  Unlike traditional insurance, which protects against future events, title insurance protects against claims for past occurrences.  Such claims include property ownership by another person, fraud or forgery of the title documents, unidentified easements, outstanding lawsuits, liens against the property, etc. 


An escrow or closing agent initiates the insurance process upon completion of the property purchase agreement. There are two types of title insurance:  lender's insurance & owner's insurance.  Almost all lenders require the borrower to purchase a lender's title insurance policy to protect the lender in the event the seller was not legally able to transfer the title of ownership rights.  A lender's policy only protects the lender against loss. 

Since title searches are not infallible, and the owner remains at risk of loss, there is a need for additional protection in the form of an owner's title insurance policy. Owner's title insurance is optional.  However, having no title insurance exposes transacting parties to significant risk in the event a title defect is present.  Consider a homebuyer searching for the house of their dreams only to find, after closing, unpaid property taxes from the prior owner.  Without title insurance, the financial burden of this claim for back taxes rests solely with the buyer.  They will either pay the outstanding property taxes or risk losing the home to the taxing entity.  Under the same scenario with title insurance, the coverage protects the buyer for as long as they own or have interest in the property.  At closing, the parties purchase title insurance for a one-time fee.

Title Insurance 101

Title insurance protects both real estate owners and lenders against loss or damage