A Helpful Guide to Title Insurance Terms for the First-Timer

A Helpful Guide to Title Insurance Terms for the First-Timer

Read on to learn more about basic title insurance terms that first-time homebuyers need to know.

Are you planning on moving soon? If so, you may require a title insurance guide to get you through the process. From forwarding your mail to setting up utilities, there are a bunch of things you have to do before you can consider yourself settled in your new home. Having a title search come up clear is one of those things. Title insurance is one of the most important things that any first-time homebuyers should research as it can protect their investment and limit their liability. Here is a guide to basic terms that are popular in discussions about title insurance. Read on and learn how to talk about title insurance like this isn’t your first time buying a home — even if it is.

Key Terms to Understand

Title insurance comes with a slew of jargon. If you have read about title insurance before, you have likely slogged through an article or two trying to figure out the key terms through context clues. Many of the phrases people use in discussions of title insurance do not make much sense to a first-time homebuyer. To make things easier for you, we have defined some key terms that relate to title insurance. Read on to learn about these terms and improve your understanding of what title insurance is.

  • Title: A title is simply the document that proves someone legally owns a piece of property. Unsurprisingly, titles are critical when it comes to title insurance.
  • Escrow: Escrow is the period where a third party (like a title company) will hold the funds for the property in question until the real estate transaction is finalized.
  • Title search: This usually occurs during escrow. The title search is used to find any potential mishaps or defects in past titles for the property you plan on purchasing.
  • Lien: If the property’s owner owes money to someone else, they (the lienholder) can end up owning the property until the debt is fully paid off.

A Title Company You Can Trust: Colony Title

At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.

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