What Is Title Insurance & Why Do You Need It?
When you purchase real estate, you expect clear ownership, but hidden title issues—such as liens, disputes, or recording errors—can put your investment at risk. Title insurance protects buyers, lenders, and property owners from financial loss due to past defects in the property’s title.
At Northway Title Agency, Inc., we specialize in residential and commercial title insurance across New York State, ensuring your transaction is secure, marketable, and legally protected.
What Are Common Title Problems?
Even with a thorough title search, hidden risks can arise after closing. Some of the most common title issues include:
✔️ Forged or falsified documents – Fraudulent deeds or signatures impacting ownership
✔️ Invalid or conflicting deeds – Errors in ownership transfers
✔️ Incorrect property descriptions – Mistakes in legal documents
✔️ Unpaid liens – Outstanding debts, including mechanics’ liens, judgment liens, and tax liens
✔️ Recording errors & deed indexing mistakes – Clerical errors affecting property records
✔️ Undisclosed easements – Hidden restrictions on property use
✔️ Claims from missing heirs or ex-spouses – Unexpected ownership disputes
Without title insurance, these problems can lead to legal battles, unexpected costs, and even loss of ownership.
What Does Title Insurance Cost?
The cost of title insurance is relatively small compared to the total property transaction—typically 0.5% to 1% of the purchase price.
Title insurance pricing is based on four key factors:
1️⃣ Title Search & Examination Costs – Investigating public records for ownership history and title defects
2️⃣ Resolving Title Issues – Clearing any defects before issuing the policy
3️⃣ Claims Coverage – Protecting against financial loss due to covered title defects
4️⃣ Operational Costs & Profit Margins – Ensuring sustainability of the title agency
This one-time premium provides lifetime protection for your property rights.
What a Title Policy Can & Can’t Do
What a Title Policy Covers:
✅ Financial protection against covered title defects
✅ Indemnification for losses up to the property’s value or policy limits
✅ Legal defense costs if ownership is challenged
What a Title Policy Does NOT Cover:
❌ Guarantee of marketability – A policy protects against defects but does not ensure the title is free of all claims
❌ Liens & encumbrances after the policy date – Only past defects are covered
❌ Tort claims – Does not cover trespassing, theft of timber, or property disputes unrelated to title ownership