If you are in the process of purchasing a home in Lincoln, Maine, you’ve likely heard the terms “title insurance” and “title search” thrown around. It’s important to understand the difference between these terms, as they both play an important role in the home buying process.
A title search is a review of a property’s public records. It’s a thorough examination of the history of the property and all its owners. During a title search, a title company or attorney will search for any liens, claims, or outstanding issues that could affect the ownership of the property. The title search is an important step in ensuring that the seller has the right to sell the property and that the buyer will receive a clear title.
Title insurance, on the other hand, is a type of insurance policy that provides financial protection to the buyer and lender in case there are any hidden issues with the title that weren’t discovered during the title search. This type of insurance policy is typically required by lenders before they will approve a mortgage loan.
Title insurance will provide reimbursement to the buyer if any issues with the title arise after the closing date. This could include unpaid taxes or mortgages, liens, or any other claims against the property. Title insurance will also cover legal fees if the buyer has to take legal action to resolve the issue.
In Lincoln, Maine, it is important to understand the difference between title insurance and title search. Both are important steps in the home buying process, and it is important to have both in order to ensure that you are receiving a clear title to the property. If you’re in the process of buying a home in Lincoln, Maine, make sure to ask your real estate professional or title company about title insurance and title search to ensure that you are protected.Insurance vs. Title Search: Clarifying the Difference for Lincoln, ME BuyersTitle Insurance vs. Title Search: Clarifying the Difference for Lincoln, ME Buyers