What Is Title Insurance of Real Estate?

When you refinance your home or try to buy a new home, the term property insurance comes up at several points. Lots of people don't know what property insurance is, but they buy it every day.

In short, property insurance is a policy that limits the risk to buyers, owners, and lenders in real estate transactions. Insurance may not financially cover all three in every transaction, but by eliminating liability risk, property insurance from the best title insurance company in NJ has a positive impact on everyone involved.

What Is Title Insurance of Real Estate?

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If someone wants to buy a property, they will ask a lawyer to investigate the property. The attorney travels to the courthouse and collects all the necessary documents to ensure the property is free from mortgages, tax appointments, arrests, and city decisions.

He will make sure that the person selling the property is the real owner of the records and will investigate the chain of ownership to ensure that how the owner acquired the property is not making any claims.


In many ways, lender guidelines and owner guidelines are similar. When someone refinances, property insurance is taken out at the borrower's expense to ensure that the new bank will foreclose on their mortgage at the courthouse first when it closes. At this stage, the bank can apply for property insurance.


When you own real estate, you want to be sure of the various risks associated with this type of transaction. The first is to identify the right owner. I'm sure you've heard the old Brooklyn Bridge line about filmmaking and real estate. The title company confirms this for you.