In most communities, it is common for the seller to provide you, at the seller's expense, with an owners title insurance policy in connection with your home purchase. Your contract should make this a requirement.

A commitment to issue this insurance policy is furnished to your attorney prior to closing. It will show who owns the property, what liens or other matters affect the seller's ownership (such as mortgages, unpaid taxes or judgment), as well as any easements, building restrictions, set-back lines or other matters of record which affect the property. Your attorney will review this title commitment and require that the seller clear up any items which are not permitted by your contract and which would adversely affect your ownership rights.

After closing, you will be issued an owners title insurance policy, which insures your ownership rights subject to the terms of the policy. If you are obtaining financing to purchase the property, your lender will require that the title company issue, at your expense, a title policy insuring the validity of your lender's mortgage. This is commonly called a loan policy or mortgage policy. It insures only the lender's interest and does not take the place of the owners policy issued to you.