Title insurance is a type of insurance policy that protects homebuyers and lenders against any issues that may arise with the title of a property. It is typically purchased during the closing process and provides coverage for as long as you or your heirs own the property.

Title insurance is necessary because a title search is not foolproof, and there may be issues with the title that are not discovered during the search. Some common examples of issues that could arise include:
* Fraudulent ownership claims
* Forged signatures on documents related to the property
* Liens or judgments against the property
* Encroachments or boundary disputes with neighboring properties

If any of these issues or others arise, title insurance can help protect you from financial loss. The policy will cover the cost of any legal fees, settlements, or other expenses associated with resolving the issue, up to the amount of the policy.

In many cases, lenders will require title insurance as a condition of the loan. However, even if it is not required, it is generally recommended that homebuyers purchase title insurance to protect themselves against any unexpected issues that may arise with the title of the property.

In a typical home purchase, an escrow account is used to hold the buyer's earnest money deposit, which is a deposit made by the buyer to show that they are serious about buying the property. The escrow agent will also hold other important documents related to the transaction, such as the purchase agreement, the title report, and any other legal documents related to the sale.

Once all of the conditions of the sale are met, such as the completion of any necessary inspections or repairs, and the buyer obtains financing, the escrow agent will distribute the funds from the account to pay for the purchase price of the property and any other closing costs. The agent will also transfer the ownership of the property to the buyer and record the transaction with the appropriate government agencies.

Escrow accounts provide a level of security and protection for both the buyer and the seller in a real estate transaction. They ensure that all of the necessary steps are taken to complete the sale and that all funds and documents are handled appropriately.

A title defect is any issue that affects the ownership history of a property and may prevent the new owner from having clear and marketable title. Title defects can include things like unpaid taxes, liens, or easements that may impact the sale of the property.

A closing statement, also known as a settlement statement, is a document that outlines all of the costs and credits associated with the purchase or sale of a property. It is typically prepared by the escrow or closing agent and is presented to both the buyer and the seller at the closing.

The closing statement includes a detailed breakdown of all of the fees and charges associated with the transaction, including the purchase price of the property, loan fees, title insurance, and any other expenses related to the closing. It will also include any credits or adjustments that may be due to either the buyer or the seller, such as prorated property taxes or prepaid homeowner's insurance.

Homebuyers should carefully review the closing statement before signing it to ensure that all of the fees and charges are accurate and that there are no unexpected surprises. It's important to ask questions about anything that may be unclear or that you do not understand.