Does title insurance protect me against liens placed AFTER we close?



The peculiarity of title insurance is that it protects the insured for something that has happened BEFORE you close the real estate transaction. This is in contrast with other insurance that covers you against something that may happen AFTER you bought the policy.

The title insurance will only protect you against problems with past ownership of the property. If liens are placed on the property after your deal with the seller is closed, you will have to resolve the issue yourself.

For instance, you bought a piece of raw land and had a house built on it. You paid the contractor for the construction of the building. However, the subcontractors placed a lien on the property, claiming that the contractor did not pay them for their services. Since this lien was placed after you bought the property and is not related with past ownership issues, this is not included in what the title insurance policy will protect against.

To know exactly what items are covered in your title insurance policy, it is best to check its terms and conditions.

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