Purchasing a new property requires a significant investment of time and money. After going through this process, the last thing you want is for someone to come knocking on your door claiming you are not the rightful owner of the property. Title disputes are just one of the scenarios where Monarch’s title insurance has your back. Title insurance is a contract between the title insurance company and the insured that protects the property buyer and lender against problems with a property title when there is a transfer of ownership. Despite its importance, title insurance is surrounded by misconceptions that can prevent people from getting the coverage they need. To help you get a better understanding of what title insurance is, we at Monarch Title will debunk some common misconceptions.

1. A buyer doesn’t need title insurance
   Title insurance is usually required by mortgage companies and lenders, and reasonably so. Title insurance protects your investment from mistakes or forgeries in wills, fraud, liens, zoning ordinances, lack of right of access, allegations that a past owner didn’t authorize the sale, and many other circumstances. Even if you don’t have a mortgage that requires title insurance, having it will give you peace of mind.
   
2. New homes don’t need title insurance
   Just because you are the first owner of a home, that doesn’t mean that title insurance is not needed. The land where the property is built has been there for a long time and could have had several owners before the development company took over.
   
3. The seller can transfer their title insurance at closing
   Title insurance is not transferable. You can request the seller to provide you with a copy of their title insurance to present to the insurance company to request a reissue rate if applicable. However, the title itself can’t be transferred.
   
4. Title insurance requires monthly payments
   This is not true. Title insurance is a one-time investment that will protect your property ownership for as long as you and your heirs own the property.
   
5. Title insurance is the same as homeowner’s insurance
   Homeowner’s insurance protects you against damages to the property, for example, those caused by a fire. Title insurance protects your ownership rights to the property.

Title insurance is a complex subject, but Monarch Title is here to help you navigate the process. The Monarch team has decades of experience serving real estate professionals, consumers, and lenders throughout Mid-Missouri. We’ll be happy to answer any questions you might have.