Home buyers in Washington tend to have a lot of questions about title insurance. Three of the most common questions are:
Let’s address each of these questions in turn:
Title insurance gives mortgage lenders and homeowners protection from legal claims relating to ownership of the home. For instance, if you buy a home in Washington, and someone files a lawsuit claiming that they are still a full or partial owner of the property, a title insurance policy would offer some degree of financial protection.
These policies might also come to the holder’s defense if a contractor can also protect against contractors who claim they weren’t paid for work performed on the house before you purchased it. In this case, the word “title” relates to the legal ownership of the home.
There are two main types of title insurance in Washington — one for the lender, and one for the home buyer (and soon-to-be homeowner). While they offer protection to different parties, the protection itself is basically the same.
In addition, most of the company’s that provide title insurance in Washington State will conduct some upfront research to make sure the title is clear and free from legal claims. This is partly what makes it unique from other kinds of insurance — it puts an emphasis on loss prevention. What’s also unique is the fact that title insurance in Washington is usually paid all at once, as a lump sum.
In Washington, as in most other states, banks and other mortgage lenders usually require a lender’s title insurance policy. This protects their interests, usually up to the loan amount. The owner’s policy is usually optional and not required by law. But it still might be a good investment, depending on the nature of your real estate transaction.
According to the Office of the Insurance Commissioner for Washington State: “To protect your interest, you [the home buyer] will need an owner’s title policy for the full price you paid for the property. Generally, most sellers pay for the owner’s policy.”
The cost of title insurance in Washington State can vary due to a number of factors, including the amount of coverage and the upfront services to be performed. These policies usually range from a few hundred dollars on the low end up to $2,000 — or even more. in some cases. Home buyers typically pay this cost up front, as part of the closing costs. (Unless the buyer can get the seller to cover it.)
Related: Who pays what closing costs?
At Sammamish Mortgage, we have been serving the financing needs of home buyers and homeowners in Washington since 1992. We offer a variety of mortgage programs to borrowers across Washington, Oregon, California, Colorado, and Idaho with flexible criteria. Please contact us if you have questions about getting a mortgage loan, or if you would like to receive a rate quote and cost estimate.
Title insurance protects against certain legal claims, liens, and ownership disputes involving a property.
Title insurance can protect either the mortgage lender or the homeowner, depending on the type of policy purchased.
Lenders usually require a lender’s title insurance policy in Washington State. An owner’s policy is generally optional and not required by law.
A lender’s title insurance policy protects the mortgage lender against covered title problems, usually up to the loan amount.
An owner’s title insurance policy protects the homebuyer or homeowner against covered title issues affecting ownership rights.
Title insurance can help cover ownership disputes, certain liens, and legal claims tied to the property’s title.
It can provide protection in some situations involving contractor-related claims or liens from work completed before the purchase.
Title insurance is different because it often includes upfront title research to identify and prevent problems before they lead to losses.
Title insurance in Washington is usually paid as a one-time lump-sum cost at closing.
The owner’s title policy is often paid by the seller, but payment can vary based on the terms of the real estate transaction.
Our loan officers are ready and waiting to help you apply for your home loan.
Whether you’re buying a home or ready to refinance, our professionals can help.
Mortgage Support — 24/7
No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.
Adjust the parameters based on what you want to track
