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Monica Said:

What does Title insurance cover and does it help me, the buyer?

We Answered:

I can only add a little to what has already be said in other answers, and perhaps just put some of the same things said in a different light.
First up, Title Insurance is required by all lenders. Its their indemnity policy to protect them against loss.The fact that the insurer issues a policy to the lender who requires you to foot the bill indicates that the title has been searched. But no title search is 100% reliable.
Title insurance protects from claims arising prior to the date of the policy, coverage going back into time indefinitely, lasting as long as you or your heirs have any interest in the property. The home you are about to purchase could have changed hands a number of times and at any time there could have been fraud, fault, unpaid taxes that emerge later to cause trouble.
A very important point raised by others in their answers is that you need to get an owner's title policy for the full value of the home. That's because the lender's policy doesn't cover your equity, which hopefully will build in value over time. That's what Bostonianinmo is referring to.
The cost of the obligatory lender's policy varies from state to state because the services paid for vary. In some states the premium covers protection only and costs of search and title exam are covered separately. Each state has different regulatory regimes which affect the charges.
Check out the glossary on the site I have referenced as a source for specific foreclosure terminology.

Douglas Said:

Do I need to pay title insurance when I do a refi? What is the point?

We Answered:

Yes, it is a lender requirement. When you closed you got two policies, one for the lender and one for you as the owner.

You are paying for the new loan policy only. It doesn't transfer from loan to loan or lender to lender.

Only your owners policy is still in effect as long as you own the property, no matter how many times you refinance.

Lillian Said:

What is the purpose of title insurance and why do you need it?

We Answered:

There is no absolutely right answer for your question.Nonetheless,explorer the information here http://www.InsuranceFreeTip.info/insurance-for-free.htm might give you some ideas.HOpe it helps.

Agnes Said:

What is title insurance and can I purchase it and have it work in a foreclosure auction scenario?

We Answered:

You are correct in your assumption of what title insurance provides. Before a title insurance firm will provide insurance, they will perform a search of the condition of the title covering the property in question. Contact a local title insurance provider and explain to them what you propose to do, and they will advise you accordingly, as to what liens may be against the property.

Rick Said:

What value does a real estate lawyer add on top of title insurance?

We Answered:

Depends on the transaction, if it's a refinance, I would tend to agree with you even though I don't understand what you mean by stating title insurance negates the need for tax and water certificate. I'd also be cautious of the legal description errors. I had a situation in NY, purchase, where the deed to the property did not contain a legal description at all. the previous title company would not give us a letter of indemity for our title and then come to find out our title underwriter would not accept it, the original deed had to be found and re-recorded, no exception, so I guess it depends on what you mean by "errors" On a purchase transaction, they usually add more value due to the purchase contracts and drafting of deeds, etc. To be bluntly honest, most attorneys usually dont even touch the file unless there is a major problem, their paralegals handle the day to day operations

Brian Said:

Do attorneys issue and sell title insurance or simply buy it on behalf of their clients?

We Answered:

the attorney has to be approved to do title opinions for title insurance companies. there are required classes and seminars and insurance the attorney must have before they are cleared to do the title check and opinion for the title insurance company. Then the title company issues the policy.