Does title insurance protect you?

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I am buying a house in WA that is a short sale from the lender. I know there are leans on the house. The builder left town and didn’t finish the house completely. The seller (bank) will provide title insurance as part of escrow. Am I protected from any leans? Is there anything else I need to worry about with this transaction? Thanks
So, if title insurance is issued, am I insured against any leans that are on the property?
What would happen if someone put a lean on the house after escrow is closed? Thanks

4 Comments
  1. Reply
    Big Deal Maker
    June 26, 2011 at 7:40 am

    You will place the offer on the home. The bank is offering you a clear title from all encumbers. Liens will be removed from the title and the title company is insuring you for this purpose. Have an attorney go over your loan before you sign a thing.

  2. Reply
    Discover More
    June 26, 2011 at 7:41 am

    liens go with the land if you buy it knowing there are liens .guess what you just bought the liens to and now they are your responsibility.

  3. Reply
    chatsplas
    June 26, 2011 at 7:46 am

    That is lien, as is debt attached to the property.
    It leans because its foundation was improper.

    All liens should be cleared before closing and you and your bank should not pay for anything without these assurances. Get your attorney involved, this is not for beginner.

  4. Reply
    Landlord
    June 26, 2011 at 8:15 am

    I have used my title insurance. They saved me thousands.

    You will NOT be protected from liens that are known now, those have to be cleared before you can obtain title.

    They do protect you from ones that come up later that were missed during the search.

    They also protect your actual title, if there is any dispute about teh lot lines and what you own they will come in to your defense. Big guns a’blazen too. I could never have afforded the attorney I was given during a dispute I had. No way.

    I highly recommend title insurance, it is cheap, and you may never use it, but the things they handle could cost you your lifes savings. They are absolutely the most cost effective insurance there is. Also, they are not like other insurance, where they try to duck claims. No, it is more like they wait for you to call and are ahppy to actually have something real to do.

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