Before closing your new
mortgage, your new lender must be certain that the title to the property will
be free and clear, free of prior defects and indebtedness. A new policy is
needed to protect the new lender and subsequent investor of your new mortgage.
Both a homeowner and prospective lender need to be certain that what is
available on the property is what is referred to as a "marketable title". A
title company researches the legal history of the property that entails
searching public records in the offices of the county recorder. Problems with
the title could threaten the mortgage, limit ones use and enjoyment of the
property and could result in financial loss. A policy of title insurance
protects a homeowner's title and the insurer covers the cost of any legal
The information contained on this website is provided as a supplemental educational resource. Readers having legal or tax questions are urged to obtain advice from their professional legal or tax advisors. While the aforementioned information has been collected from a variety of sources deemed reliable, it is not guaranteed and should be independently verified.
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