A First-Time Homebuyer’s Guide To Title Insurance


If you are a first-time homebuyer, you need to understand title insurance.

Congratulations! You have purchased a home for the first time in your life. This is a massive transition in anyone’s life. In fact, you can certainly feel quite overwhelmed with the entire process. But what happens when the seller sells a home that wasn’t actually theirs? Legally, the home might not belong to you either! To avoid this tragedy, title insurance can come in handy!

Understanding Title Insurance Jargon

There is a finite capacity of terms that are used quite often within the real estate world- and that is even more narrow when it comes to title insurance specifically. Title insurance jargon is notoriously confusing and overwhelming, so we’ve created a handy guide to helping people get familiar with the unfamiliar.


  • Title: A title is simply a document that proves that you (an individual) owns a specific property.
  • Escrow: Escrow is simply the period of time where a third party (like a title company) holds the actual funds for the specific sale of a home until the real estate transaction is ready to be finally completed.
  • Title search: During the escrow period, a title search is conducted to look for any potential mishaps in past titles for the specific property.
  • Lien: A lien can be placed on a home if an individual owes money to someone else. THe lienholder is the only person who can place a lien on a property. Once the debt it fully paid, the lien is lifted.


Title Insurance In A Nutshell

In the end, title insurance really isn’t all that different from other types of insurance. However, there is one very important exception- title insurance actually protects you from any possible events that happened in the past. It does not however, protect homeowners from events that might happen in the future like traditional insurance methods.

A Title Insurance Company You Can Trust: Colony Title Associates

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 and sell 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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