A guest post by Valerie Leap, Branch Manager at Sunbelt Title.
Your investment in real estate needs to be protected from fraud, errors, liens and judgments. A title policy assures you that your title to the property has been investigated thoroughly and that your deed is an absolute conveyance of the fee simple interest of the seller.
The loan policy does not protect the buyer/borrower –
Many buyers believe the loan policy protects them as well as the lender against loss due to unknown title defects. In fact, this policy only protects the lender’s interest, and not the borrower/buyer.