What is Title insurance?

In Massachusetts, the attorney who represent the bank is required to search the tile of the home you may be purchasing at the Registry of Deeds to the property that is being mortgaged to certify that the buyer has good, clear, record and marketable tile.

The policy that protects the bank is called Lender’s Title Insurance. The buyer pays the premium for this policy, even though the policy benefits only the bank.

However, at the loan closing the buyer will be given the opportunity to purchase Owner's Title insurance. This policy will protect the buyer. The purchase of an owner’s policy is entirely optional, but it’s good protection that you will want to seriously consider.

What is the likelihood of there being a title problem that is not covered by the attorney’s certification?

The likelihood is not great, but the financial ramification could be devastating. It is very expensive and time consuming to cure even simple title problems, and if a problem can’t be solved the financial loss could be borne solely by the owner of the property.