Step 33 of 48 Phase 4: Make an Offer & Negotiate
4.10 Clear Title & Order Insurance
Clear title ensures you are buying from the true owner with no hidden claims on the property. Title insurance protects you from future claims that the search might miss.
What Title Search Reveals
- Current ownership and chain of title
- Outstanding mortgages or liens
- Unpaid property taxes
- Easements and right-of-way agreements
- Judgments against the property owner
- Restrictions or covenants on the property
Title Insurance Types
| Type | Who It Protects | Who Pays | Coverage |
|---|---|---|---|
| Lender's Policy | Your mortgage lender | Usually buyer | Required for loan, covers loan amount |
| Owner's Policy | You (the buyer) | Buyer or negotiated | Optional but recommended, covers purchase price |
Common Title Issues
- Liens from unpaid contractors, taxes, or child support
- Errors in public records or legal descriptions
- Unknown heirs claiming ownership
- Forged documents in the chain of title
- Undisclosed easements affecting property use
Pro Tips
- Get owner's title insurance - it is a one-time cost for permanent protection
- Review the title commitment document before closing
- Ask about exceptions and exclusions in the policy
- Resolve any title issues before the closing date