Page 33 - Homeowners Manual - Utah

4� Title insurance is expensive�
The one-time premium for an owner’s title policy is based on the purchase price of your home and
accounts for only a small percentage of your closing costs� Coverage is provided for as long as you and
your heirs own the property� When you add up the benefits compared to the costs, an owner’s policy of
title insurance is quite reasonable�

5� Paying all cash eliminates the need for title insurance�

An all-cash purchase eliminates the requirement of a mortgage loan and therefore eliminates the
need for lender’s title insurance� However, an all-cash transaction does not eliminate the risk posed by
unknown title defects� An owner’s policy protects you against possible loss or damage from a covered
title defect�

6� Homeowner’s insurance and title insurance offer the same protection�

Title insurance protects a buyer’s right to ownership and a lender’s investment� On the other hand,
homeowner’s insurance is a policy that protects you against potential losses or damage you can
experience to the structure of your home or its contents during an insurable incident�

7� Home buyers do not get to choose the title company�

Under the terms of the Real Estate Settlement Procedures Act (RESPA), the buyer generally has the
right to choose the title company when the property is purchased with the assistance of a federally
related mortgage loan� The property seller may not require the buyer to purchase title insurance from
any specific title company, unless it has been instructed that the seller will pay for both the owner’s
and loan policies associated with the real estate transaction�

8� I’ll never need to use title insurance�

According to the American Land Title Association, title insurance policyholders have filed over 730,600
claims to date�* In 2018, the title industry spent over $615 million* defending the property rights of its
policyholders and compensating their losses due to covered title defects�

With so many misconceptions about title insurance, finding a team of professionals that you can trust
is imperative� At Old Republic Title, we are committed to providing quality service and being there for
you if your property rights are threatened� To learn more about title insurance and working with Old
Republic Title, contact a location near you�

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