Although a title insurance company will most likely be provided for you during the mortgage transaction process, be aware that you are not obligated to use any suggested title insurance company.

 

  • Be sure to inquire about the services and fees included in a title insurance premium and take a good look at any fees (e.g., cost of search and examination, closing services, etc.) that may be charged to you separately.
  • A lender’s title insurance policy only covers the lender’s loss; it does not protect the homebuyer from losses arising from defects in title. Consult with a local, reputable real estate attorney not involved in the real estate transaction to find out if it is in your best interest to purchase an owner’s title insurance policy for your home.
  • Make sure to inquire about any discounts available on title insurance policies. Premium discounts might be available if both the owner’s title insurance policy and the lender’s title insurance policies are purchased from the same title insurance company or if you are refinancing your loan.
  • Read all title insurance documents provided at the closing, including the fine print tedious though it may seem. Ask questions if any items are unclear; or if any terms, conditions or amounts are not in line with those provided in previous discussions.

 

If at any point you believe that the title insurance agent or title insurance company is not following standard business practices (e.g., unexpected or undocumented fees) in a real estate transaction, you can report the activity to your state’s insurance department. A map linking to the state insurance department web site is provided here at www.naic.org. Contact information regarding the reporting of consumer complaints is provided there as well.