Owner's Title Insurance protects the buyer of the real estate while Mortgage Title Insurance protects the lender in a real estate transaction. Both policies protect the policy holder and shoud a problem occur. It remains valid for as long as the owner or his or her heirs have an interest in the real estate.
An Owner’s Policy fully protects the buyer should a problem arise with the title that was not found during the title search such as:
- Errors or omissions in deeds
- Mistakes in examining records
- Forgery of signatures or documents
- Undisclosed heirs or rights holders
Mortgage Title Insurance insures the lender in a purchase or refinance transaction that they have a valid lien on the property. A new policy is viewed whenever a new mortgage is placed on the property.