When applying for a mortgage loan, most lenders will require you to receive a title search before closing with your escrow company. A property title search includes examining public records of your property by a title company.
Some issues the title company look for include:
• False signatures or fraudulent claims made against the property
• Clerical errors in the courthouse documents
• Claims for unpaid property taxes
• Claims for workers who worked on the property but were never compensated
• Conflicts between former owners over wills
Most homeowners don’t ever need to use their title insurance, but it’s smart to have protection in the rare case any issues arise.