Title insurance ensures that a new property owner’s title is free from any encumbrances and provides protection against losses due to defects such as forged deeds, mistakes in public records, fraud, and false impersonation. A thorough search of the records reveals any liens or claims that may affect the property. The two main types of title insurance policies are the Owner’s Policy, which insures the owner, and the Loan Policy, which insures the lender.

An Earnest Money Contract is a formal agreement between a buyer and a seller that outlines the terms of the transaction, including the sales price, duration, and responsibility for certain charges. It is often required by lenders as part of the sales process.

A survey provides a detailed representation of the property’s boundaries, dimensions, and area. It may also identify improvements on the property and access to public roads. If the survey is outdated or does not show improvements, a new survey may be required by the lender or title company.

A chain of title is a historical record of ownership for a piece of land, showing each time the property was bought and sold. This record can be obtained from the county clerk’s office or through electronic databases maintained by title companies.

A title search examines public records to identify any legal claims or encumbrances on the property. This includes reviewing deed records, tax liens, abstracts of judgment, probate records, and other documents that could affect the property's title.

After completing the title search, a Title Insurance Commitment is issued, outlining the findings of the search. This document includes information on the proposed transaction, any exceptions, and requirements to be fulfilled before closing.

Closing is the final step in the transaction process. After approval of the title commitment and loan documents, a closing date is scheduled. All parties involved meet to sign necessary documents and finalize the transfer of ownership and payment.

A Settlement Statement outlines all the charges and payments involved in the transaction. It provides a detailed breakdown of the costs associated with closing.

Title insurance premiums are regulated by the state, ensuring that all title companies charge the same rates for the same level of coverage.

Buyers and sellers must bring photo ID, evidence of insurance, and any required funds (either a cashier's check or wire transfer). Buyers should also check with their lender for any last-minute requirements.