Do I need owner’s title insurance to buy a home in Natick, MA?

Additional Information:

I am buying a home in Natick, MA and my lender requires that I pay for lender’s title insurance.  Do I also need to buy owners’ title insurance?

ATTORNEY ANSWER:

The lender’s title insurance, or Loan Policy, protects the lender in the amount of the mortgage.  Once you have paid of the mortgage on the property, the Loan Policy is void.  An Owner’s Policy protects the buyer up to the purchase price.  This is especially important when you have made a substantial down payment, resulting in substantial equity in the property.

Owners’ title insurance is a one time premium paid at the time of closing.  It remains in effect as long as you own the property.

Generally, title insurance covers problems or errors in the chain of title, such as missing or forged signatures, missing discharges, and probate issues.  If a title issue were to arise after closing, the title insurance company would hire a real estate lawyer at its expense and attempt to resolve the problem if it was a matter covered under the title insurance policy.  A buyer who did not purchase an Owners’ Policy would need to hire a real estate lawyer at their own expense, and incur whatever the necessary expenses to resolve the title issue.

It is important to keep in mind:

1.    Lender’s policy only covers and protects the lender’s interest.
2.    Owner’s policy is a one time charge, and just like any other kind of insurance, it means nothing—until and unless there is a problem that it insures against!

The Natick, MA Real Estate Attorneys at Goldberg & Oriel represent individuals and businesses throughout Massachusetts.   Located in Framingham, Massachusetts our attorneys serve the entire Boston region including the communities of Acton, Arlington, Belmont, Boston, Braintree, Brockton, Brookline, Burlington, Cambridge, Canton, Dedham, Framingham, Lexington, Marlborough, Milton, Natick, Needham, Newton, Norwood, Quincy, Waltham, Watertown, Wellesley, and Worcester.