Title Insurance — what it is and why both parties need it
⏱ Estimated time: 15 minutes to read
⚠️ Draft content
This entry is a working draft and hasn't been reviewed by a licensed professional yet. Always use the official source linked below as your authoritative reference.
Title insurance protects buyers and lenders against losses from title defects — undisclosed liens, forged deeds, errors in public records, missing heirs, undisclosed easements. There are two policies: a Lender's Policy (required by virtually every lender, paid by the buyer) and an Owner's Policy (optional but strongly recommended, sometimes paid by the seller, sometimes the buyer, depending on local custom). Title insurance is a one-time premium paid at closing — it covers you for as long as you own the home.
📥 Find your state's official form
Every state publishes its own version of this document. Pick your state below and we'll send you straight to its real estate commission, where you can download the official form.
The two policies
What title insurance protects against
• Errors and omissions in deeds and public records
• Undiscovered liens (contractor liens, tax liens, judgment liens)
• Forged deeds in the chain of title
• Missing heirs who later claim ownership
• Boundary disputes from incorrect surveys
• Unknown easements or restrictions
• Mistakes in legal descriptions
Who pays for what (varies by state and local custom)
Title insurance custom varies widely by state and even by county. In some markets the seller pays the Owner's Policy; in others the buyer pays both. Negotiating who pays is fair game in your purchase agreement.
If you're not sure what's customary in your area, ask your title company — they'll tell you what's typical.
⚠️ Things to watch out for
Commonly-reported issues people run into with this document. Always verify the specifics with your state's official source or a licensed professional.
- •Cash buyers skipping the Owner's Policy to save money. Title defects can wipe out your entire equity.
- •Not shopping around. Title insurance pricing is regulated in many states but title COMPANIES still vary in their service and ancillary fees. Get 2-3 quotes.
- •Confusing title insurance with homeowner's insurance. They cover totally different risks. You need both.
- •Assuming the title search means there are no problems. The search catches what's in public records — title insurance covers what the search MISSED.
Last reviewed: 2026-04-09 · Placeholder content — pending review
This entry is informational only — not legal advice. Frula Homes is an informational platform. We point you to official sources; we don't prepare, review, or interpret legal documents, and we're not your attorney or real estate agent. For legal questions specific to your situation, consult a licensed attorney in your state.