This is a YouTube video titled "🚨 Title Insurance 🚨" containing an explanation about title insurance in mortgage transactions. The speaker discusses the importance of title insurance for buyers and lenders, highlighting potential issues such as unknown parties on the title or unresolved liens that title insurance can protect against. The content was created on November 28, 2021.
Title insurance is provided by the title company or escrow agent in a mortgage transaction. Now, the reason why this is important. For example, let's say you have a seller and a buyer selling the property like normal. But let's say the seller added their cousin on the title work years ago. No one knew about it. Well, that cousin comes out of the woodworks and says, hey, I still own that property. That'd be a huge issue for the new buyer. Or if there was a previous lien that never got properly cleared up, that would now be the new buyer's lien. Not fair, but that's how it works. Title insurance would protect the buyer in that situation. Lenders must have it buyers. It's optional, but it's highly recommended to have yourself protected.
