Definition
Insurance that protects against financial loss from defects in the title to a property, such as liens, encumbrances, or ownership disputes. Lender's title insurance is required by all mortgage lenders. Owner's title insurance is optional but strongly recommended. Title insurance is a one-time fee paid at closing, typically $500-$3,500 depending on the property value.
Related Mortgage Terms
- Closing Costs
Fees and expenses paid at the finalization of a real estate transaction, typical...
- Deed of Trust
A legal document used in many states instead of a mortgage that involves three p...
- Title
The legal right to own, use, and dispose of a property. A title search examines ...
- Amortization
The process of paying off a mortgage through regular monthly payments of princip...
- Annual Percentage Rate (APR)
The total annual cost of a mortgage expressed as a percentage, including the int...
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