It protects your ownership right
to your home both from fraudulent claims against your ownership and from
mistakes made in earlier sales, such as mistake in the spelling of a person's
name or an inaccurate description of the property.
It's a one-time cost usually based
on the price of the property.
It's usually paid for by the
sellers.
There are both lender title
policies, which protect the lender, and owner title policies, which protect
you. The lender will probably require a lender policy.
Discounts on premiums are
sometimes available if the home has been bought within only a few years since
not as much work is required to check the title. Ask the title company if this
discount is available.
