If you are currently going through the home buying experience, or you want to have a better understanding of your owner's title insurance, you should know the most common title insurance terms on the market. They will help you gain an understanding of the documents and financial tools you will use to get through the escrow closing process. The expert staff at First Financial Title Agency of Minnesota in Burnsville, MN, identify five terms you should know to gain a clear understanding of your title insurance. 

Common Title Industry Terms Explained

Title Insurance

If a homeowner inadvertently acquires or purchases a home with a lien or encumbrance attached to it, the owner exposes themselves to potential loss or damages. Their property could be taken away, or others may lay claim to the property as their own. Title insurance protects the owners and real estate lenders against losses, should these events occur. 

Clear Title

A clear title indicates that one owns property free and clear without any liens or encumbrances; this document assures both the buyer and the lender that the owner is the sole entity laying claim to a piece of property.

Recording

Once the deed is signed and ownership is transferred to a new owner, you will want to make sure that your deed is recorded with the county. This notifies the community and the government that you are the sole owner of a piece of property.

Closing Appointment

This is the pre-arranged time that denotes when closing documents will be signed to transfer a piece of real property from one owner to another.

If you have questions regarding which title insurance option is best for you, the experts at First Financial Title Agency of Minnesota are on hand to assist you. Since 1989, they have specialized in title policy, escrow, and owner’s title insurance. Call them today at (952) 831-5010 or visit their website for more information.