When you buy a home, you need to be sure the seller has good title to the property. That’s where title insurance comes in. It protects you against defects in the seller’s title.
The title insurance company checks various records and issues a title insurance commitment that gives information about the title. For instance, who owns the property? Are there liens (such as unpaid tax bills) the seller should pay off before selling? Are there any easements and restrictions on the property’s use? It is important to understand all of these matters, because they can seriously affect your use and enjoyment of the property.
The title insurance commitment is an important and complex legal document that requires legal expertise to understand. Simply receiving a title insurance commitment before the closing does not by itself mean that you are getting “clean title.” Ask your lawyer to review the title insurance commitment to be sure the title presents no problems that will surface to haunt you later.