Every lender requires title insurance.
The company issuing the title insurance policy will research legal records to make sure that you are receiving clear title, or ownership, to the property. Problems with title can limit your use and enjoyment of real estate you have purchased, as well as bring financial loss. Each year, millions of dollars are involved in title disputes. Basically, title insurance protects you from losses as the result of claims on the ownership of your real estate. Unlike other insurance policies, such as homeowners and auto, title insurance protects you from things that may have happened in the past.