How can you be sure that the seller owns the Property that you are going to buy?  Problems do not often come up, but when they do, they can present huge problems. The Lender will not let you purchase the Property without proof that it actually belongs to the person who is selling it.  In order to prove it, there will have to be a Title search conducted.  During this search the examiner will look at the chain of Title of a home, he works backwards from previous owner to owner until he arrives to the point where the land was originally sold to the original owners or developers.

Title searches are carried out by Title companies and/or attorneys to discover if there are any problems with the Title.  They check to see if any Liens, judgments or Easements have been filed against the Property which might prevent the potential buyer from receiving a good Title.

Title insurance is paid as a onetime premium; the cost is based entirely on the sales price of the home.  Be sure to insist on an owner's policy, which will compensate you if there is an error in the process.