Title Insurance: Protection You Need


Why is title insurance so important? Consider the recent case of some homebuyers in Texas who purchased properties without title insurance, only to find out later that there were outstanding liens on the homes. When the builder who sold them the homes failed to pay the debts, the creditors instituted foreclosure proceedings against the buyers.

Title insurance -- which protects buyers against challenges to their ownership -- is designed to prevent such a situation. The title company's job is to provide assurance to homeowners that there are no issues that could arise down the line to harm their investment.

Recent news reports about robo-signers and lax foreclosure practices shine an even brighter light on the necessity to have solid title when buying a home. So we asked Jeffrey Yohe, director of communications for the American Land Title Association, and Steve Gottheim, regulatory counsel for the organization, to share some insights into what consumers need to know about title insurance.