Title insurance insures the lender and/or buyers against the possibility of unknown liens or discrepancies in ownership on the property they are purchasing. Sellers buy title insurance for the buyers, covering the amount of the purchase price; buyers buy title insurance so the lender will be covered for the full value of the mortgage. This is a one-time fee that is paid at closing.
What is a title search?
A title search is the process of reviewing court and other recorded documents related to the property to ensure that there are no liens or claims against the property you are buying.