Title Insurance

Title insurance is a one-time premium paid at closing that protects against undiscovered title defects: prior liens, forged deeds, undisclosed heirs, boundary disputes, or errors in public records. There are two types: lender's title insurance (required by most lenders, protects the lender's interest) and owner's title insurance (optional but recommended, protects the buyer's equity). In seller-financed deals, there is no institutional lender requiring lender's title insurance, but the buyer should always purchase owner's title insurance. The cost is typically 0.5-1% of the purchase price paid once, and coverage continues indefinitely. Never close a creative deal without it.