In many parts of the country, public records affecting real estate title are spread among several local government offices, including recorders of deeds, county courts, tax assessors, and surveyors. The loan services title search may be carried out by an escrow or title company, a lawyer, or other specialist. In addition to a formal title search, your will require a title insurance policy. The policy guards the lender against an error by whoever searched the title. Though it should have been found in the public real estate loans records, the relative's claim was missed somehow.
Errors are rare, but they do occur.
There's nothing, however, to keep you from asking the seller, during your negotiations, to pay part or all of the premium. The title insurance required by the lender protects only the lender. To protect yourself against unforeseen title problems, mortgage rates you may also want to take out an owner's title insurance policy. Normally the additional premium cost is only a fraction of the lender's policy, but this can vary from area to area. If you can obtain a re-issue rate, the premium is likely to be lower than the regular charge for a new policy.