How Title Insurance Protects Seattle Home Buyers and Sellers

How Title Insurance Protects Seattle Home Buyers and Sellers

Title insurance is a standard component of every real estate closing in Washington state. Unlike traditional insurance that protects against future events, title insurance protects policyholders against past unknown title defects, unrecorded liens, or legal ownership claims.

Two Types of Title Insurance Policies in Washington Understanding owner and lender policies ensures complete legal coverage.

• Owner Title Insurance Policy: Protects the buyer property equity and ownership rights for as long as they or their heirs own the property.
• Lender Title Insurance Policy: Protects the mortgage lender financial interest in the property up to the outstanding loan balance amount.

Common Title Defects Discovered During Escrow Title companies conduct extensive public record searches before closing.

• Unsatisfied Property Liens: Outstanding contractor mechanics liens, unpaid property taxes, or utility assessments attached to the land.
• Boundary and Easement Disputes: Unrecorded property easements, shared driveway rights, or boundary encroachments.

Frequently Asked Questions

Who pays for owner title insurance in Washington state? By local custom in King County and Washington state, the seller pays for the buyer owner title insurance policy at closing.

How long does a title insurance policy remain active? An owner title insurance policy remains active for as long as the buyer or their legal heirs retain an interest in the property.

Is title insurance a one time fee or an annual payment? Title insurance is paid once at escrow closing as a one time premium fee without recurring annual costs.

Questions about title insurance coverage or escrow settlement in Washington state?

Contact our experienced real estate team today for clear guidance!

Call: (425) 920-3959