Title insurance is required by mortgage lenders for homebuyers. However, only one type of policy will be accepted that protects the lender and not the buyer.
This is called lender's title insurance. You can purchase separate owner's insurance to protect yourself against being held responsible for title problems.
If you do not have owner's insurance, and a problem arises in the future you will likely be responsible for fixing it. This can be expensive. If the previous owner didn't pay property taxes, the municipality may place a lien on your property. This lien can't be removed until those back taxes have been paid.
How to find a title insurance company in NJ
In order to conduct the title search, you may choose to use another title insurance association in NJ than the one that the seller used.
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It's not usually necessary to work with the title company that your real estate agent or lender recommends. It is possible that you find the best coverage, lowest cost, or a better deal with another company through your lender's affiliate.
A reputable and stable company is one that will be around for decades after you purchase your home. Ask prospective companies to tell you if there have been any claims or if they have insurance.
Ask the title company whether you are eligible for any discounts. You might be eligible for programs to help first-time homebuyers or other ways to save money.
Lender's policies vs. the owner's
The lender's title insurance protects the lender against liability. This is usually for the term of your mortgage. You, the homeowner, are protected by the owner's insurance.