Protecting Your Home with Title Insurance

At Franklin Mortgage Corp, we answer questions about this process every day. Give us a call at 401-886-4261.

Buying a home may be the biggest investment you make in your lifetime. Before closing on the house, you will want to know that no other individual or entity has a right, claim or lien to the property.

A title company does all the research to insure that a property has clear title. Making sure that a property is clear of all legal encumbrances is the job of a title insurance company.

For a modest, one-time title insurance premium, you will receive continuous title insurance protection equal to the purchase price of the property or its current market value.

The title company performs an extensive search on the title history of the property. Through its research, the title company can almost always identify any title problems and have these problems cleared-up prior to closing.

Because Real Estate Law is so complex, you need an expert to make sure that all previous transactions have been correct, so you don't end up with legal problems or a problem selling your property. Your owner's policy will describe the property and outline any recorded limitations on your ownership. It will also cover what the title insurance company is responsible for. Title insurance usually covers:

  • Contested title — This usually happens when someone who owned or even lived in the home before you claims to still hold an interest. In this case, the title insurance company will defend the title and will cost you nothing.
  • Defective title — This is a general term for a legal problem with the title that cannot be corrected and includes "contested title" above. Other examples of title defects include problems with legal access to the property, easements that make the property less usable, unusable, or unsaleable. Many other complicated problems define "Defective title." The title insurance company will discover these problems, or if they miss them, insure your loss up to the amount of the policy.
In the market for a mortgage loan? We can assist you! Give us a call today at 401-886-4261. Want to get started? Apply Now.