Why Do I Need Title Insurance?

When a property is sold there are two separate title insurance policies involved, one customarily paid for by the seller and one customarily paid for by the buyer.  The seller’s policy ensures “clear title” to the buyer, i.e., there are no “clouds on the title” transferred to the buyer.  The buyer’s policy protects the lender (assuming the buyer places a mortgage on the property) as well as the buyer.

In Kitsap County there are three levels of title insurance policy available to the buyer: standard; homeowner; (a.k.a. ALTA) or extended.  These policies each provide a different level of protection for the buyer.  The issue of title insurance is normally addressed in the purchase and sale agreement if using the Northwest Multiple Listing Service (NWMLS) forms when the property is listed for sale through the NWMLS.

Click here to read additional information about what a buyer should be looking for in a title report.