YOUR ESSENTIAL GUIDE TO PROTECTING YOUR PROPERTY RIGHTS

Title insurance is a crucial component of real estate transactions, offering peace of mind for
both buyers and sellers. In Illinois, as in other states, title insurance serves to protect property
owners and mortgage lenders against losses from defects in the title to a property.

Here’s a friendly breakdown of what title insurance is and how it works in Illinois:

What is Title Insurance?

Title insurance is a form of indemnity insurance that safeguards against financial loss from
defects in title to real property and from the invalidity or unenforceability of mortgage loans.
Unlike traditional insurance, which protects against future events, title insurance covers past
title issues that may surface after you've purchased your property.

Why is Title Insurance Important in Illinois?

When you buy a property in Illinois, you're usually buying the title to the property, which
includes the right to occupy and use the space. The title might come with a history — old
mortgages, liens due to unpaid taxes, or claims from heirs, for example. A title policy
protects you and your lender from the possibility that your seller doesn't have a free and clear
title to the property and can’t legally transfer full ownership to you.

Types of Title Insurance:

• Owner’s Policy: This protects the buyer against any title problems that may arise after purchase, such as undiscovered liens, forged transfers, or unknown heirs. It's typically issued for the amount of the real estate purchase and can provide protection for as long as you own the property.
• Lender’s Policy: Also known as a loan policy, it protects the lender’s interest in the property as security for the outstanding balance under the buyer's mortgage. This is usually required by the lender and is often purchased by the borrower to protect the lender's investment.

How Does It Work?

When you agree to buy a property, a title professional will search through public records to see
if there are any problems with the home’s title. This can include a chain of title (a history of who
has owned the property) and any liens or legal judgments against the property. If a problem is
discovered, it can often be resolved before you go to closing.

Once the title policy is in place, if an issue is later discovered that wasn’t found during the
title search, your title insurance may cover the legal costs to resolve it and protect your
ownership rights.

How to Obtain Title Insurance in Illinois:

You can obtain title insurance from a title company or an attorney, but it’s important to shop
around and compare services. In Illinois, the cost of title policy may vary depending on the
provider, so it's wise to look for reputable companies with strong financial backing and excellent
customer service.
Remember, title insurance is a one-time cost that can save you from a world of trouble. It's a
smart choice for anyone entering the real estate market, ensuring that the property you fall in
love with doesn’t come with unexpected baggage.
Always consult with a real estate professional or a legal advisor to help guide you through the
intricacies of title insurance in Illinois. It's a complex area, but with the right guidance, you can
navigate it with confidence.

Mari Van Meter, a dedicated Realtor® with Berkshire Hathaway HomeServices American Heritage, leads the innovative Fly Home Dragonfly team in the NW Suburban Chicago area. Known for providing unique off-market opportunities and a 100% satisfaction guarantee, Mari specializes in swift, high-value property transactions with minimal hassle. Committed to her community and championing diversity, Mari’s approach blends advanced digital and traditional marketing for exceptional real estate solutions. 
© 2023 by Mari Van Meter. All rights reserved.

Call or text Mari @ 630-267-1808
Self-schedule a Discovery Call at: https://calendly.com/marivanmeter/discovery-call