Are you a Mount Vernon buyer who is confused about the differences between title insurance and a title search? You’re not alone. Although they are related, the two terms are not interchangeable and have different purposes. Understanding the differences between the two is critical to ensuring your real estate transaction is successful.

When it comes to a title search, this is a process that is conducted by a title company to determine the legal ownership of the property. This search includes a review of public records, such as deeds, mortgages, and liens. The title company is looking for any discrepancies or outstanding issues that could affect the property title. For example, if there is an unpaid mortgage or lien on the property, it must be paid off before the title can be transferred to the new owner.

On the other hand, title insurance is a policy that covers the buyer and lender from any losses that may occur due to title issues. While a title search might uncover potential problems, it does not guarantee that all title issues have been identified. Title insurance provides protection should any title problems arise after the sale. It also protects the buyer from any financial losses due to title defects.

It is important to note that a title search is always conducted prior to the purchase of a property, and title insurance is always recommended. While a title search is typically required for a loan or real estate transaction, title insurance is not. However, it is a smart investment that can protect you from any unforeseen title defects that may arise.

In conclusion, understanding the differences between title insurance and a title search is critical for Mount Vernon buyers. A title search is a process that is conducted by a title company to determine the legal ownership of the property, while title insurance is a policy that covers the buyer and lender from any losses that may occur due to title issues. While a title search is required for a loan or real estate transaction, title insurance is not. However, it is a smart investment that can protect you from any unforeseen title defects that may arise.Title Insurance vs. Title Search: Clarifying the Difference for Mount Vernon Buyers