Real Estate Glossary

The following are some common real estate terms you may run across during the process of buying or selling your home.

Title Insurance

Insurance that protects the lender (lender's policy) or the buyer (owner's policy) against loss arising from disputes over ownership of a property. Your lender will require that you buy title insurance to ensure that you are receiving a "marketable title." There are two types of title insurance policies:

  • Lender's policy (mandatory): This protects the lender should a flaw in the title be detected after the property has been purchased.
  • Owner's policy (optional, but recommended): This protects you should a flaw in the title be detected after the property has been purchased.
  • Generally, the buyer pays the cost of both policies. Check with your insurer, because you may receive a price break if you seek a combined lender/owner policy or if you purchase a "reissue" policy from the company that previously insured the title.

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