A Guide To Title Insurance For The First-Time Homeowner

A person signs a title insurance document

Understanding title insurance as a first-time homeowner is easier if you understand the terms that are used.

Consider a situation in which you have purchased your new home, unpacked, and finally begun to settle into the new property. And then, a few days later, you find out someone else is claiming to own the property. Maybe there were forged papers from a previous seller or a public record error. Whatever the case may be, the law states you may not have ownership of the property that you are calling your home. Although this scenario may appear to be too far-fetched to be true, the reality is, something like this can happen. Being aware of how to protect yourself in this situation is key. Owner’s title insurance is the solution for homebuyers who want to ensure that their ownership rights and property interests are protected. Here is a helpful guide to understanding the jargon and processes associated with purchasing a brand new home. 

Title Insurance Glossary

With so many complicated terms being thrown around, navigating the real estate world can be confusing and overwhelming for a first-time buyer. It can be beneficial to break these homebuying terms down one by one. 


For those new to purchasing a home, the title is simply the document that proves that you or an individual legally owns the property. 


Another term that is often thrown around is escrow. Many people are unaware that escrow is the period where a title company or some other third party can hold the actual funds for the sale of the home until the transaction is ready to be completed.

Title search

Typically, a title search will usually happen during escrow. It will be the responsibility of the title company to conduct the title search. This will help find any potential mishaps in any past titles associated with the home or property itself.


Another key term throughout the real estate process is something called a lien. If any person owes money to someone else, that person is then considered the lienholder. They are allowed to place a lien on the property until the debtor pays off the debt in full. 

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+.

Tags: , ,

Leave a Reply