What is mortgage title insurance?

Title insurance is protection against financial losses if legal issues with property rights arise after the purchase of real estate. For example, an unaccounted heir of the previous owner may be discovered, or the transaction may be declared invalid due to errors in the documents.

Why insurance is needed
Title insurance is voluntary, and you may decline it. However, in that case the mortgage rate will be higher, and the interest overpayment will be greater. Without insurance, you may lose the property or the money spent on its purchase. The policy will cover:

• Legal costs — if you have to prove your rights in court.
• Compensation for losses — for example, the cost of the apartment.
• Mortgage risks — if the bank requires early repayment of the loan.

How does it work?

• Arrangement — when buying real estate, you choose the insured amount, which is usually equal to the value of the property.
• Review — the insurer examines the ownership history.
• Protection — if a dispute arises later, the company will compensate for the losses.