How Do Title Insurance and Escrow Work Together?

What is a Title and Title Insurance?  

In the real estate world, a title establishes who owns a property. More specifically, it is an official document that dictates ownership over an asset, in this case, a house. 

Though you may have a title in place, protecting yourself with title insurance is crucial to ensure that you safeguard against any negative situation like a lien, judgment, or claim that can endanger your right to ownership. 

Protect your investment with title insurance from True Concept Title. Call our national team based in Tampa Bay, FL today: 813-263-7168. 

Learn more > Is Title Insurance Required? 

Types of Title Insurance  

Purchasing a home? There are two types of title insurance that you will likely need to acquire when purchasing a home: a lender’s policy and an owner’s policy. 

Both types of title insurance protect the interests of the specific parties that are involved in a real estate transaction. 

Lender’s Policy  

A lender’s policy offers protection to the lending party and their interests during the real estate transaction. If a claim or lien puts the transaction in danger, the lender’s policy shields the lender from any possible damages. 

In most cases, a lender’s title insurance policy is mandatory to acquire a mortgage and complete real estate transactions. 

Owner’s Policy  

An owner’s policy guards you, the buyer, from any unforeseen circumstances that may arise during a real estate transaction.

These could include the following: 

• Mistakes in official documents 
• Tampering of official documents 
• Any instances of fraud 
• A tax lien on the property 
• Any claims or judgments 
• And more 

There is a lot of money at stake during a real estate transaction, which is why it is imperative to protect your interests with title insurance. 

What is Escrow?  

Escrow is a legal arrangement where a neutral third party holds money or assets temporarily until particular conditions have been met, such as the completion of closing. 

When buying a house, escrow ensures that while you are signing documents, getting titles verified, and having housing inspections completed, that your money is in a safe place and that everything is completed smoothly. 

Typically, both parties that are involved during the closing process come to an agreed-upon price, then find an escrow company that will step in until closing is complete. 

Escrow protects both the buyer and the seller throughout the home buying process as well as throughout the term of a mortgage. The escrow account holds the funds needed to pay for taxes and the homeowner’s insurance. 

Closing time! > 6 Steps Every Homebuyer Should Expect 

How Do Title Insurance and Escrow Work Together?  

The combined efforts of title insurance and escrow offer maximum protection throughout the entire home buying process. 

Title insurance protects against any liens, accidents, or malicious acts that can negatively impact the interests of a homebuyer. 

An escrow company upholds the contractual terms for both sides involved by holding the money and assets involved in the transaction as a neutral third party until closing is complete. 

Navigating the real estate process can feel overwhelming, but reputable title insurance and escrow service can help ensure that your investment is always protected throughout the process. 

National Title and Escrow Services  

True Concept Title will be with you every step of the way during your real estate transaction, wherever you are. From title insurance to escrow processing, loan disbursements, and mortgage processing, we are your partner in all 50 states for all your real estate transaction needs. 

Buying a home? Protect your assets. Contact our Tampa, Florida-based national title, and escrow specialists today — 813-263-7168!