Buyers will need to employ the services of a Title Company. Once an offer is accepted the Buyer, the Title Company will carry out thorough checks on the property's title and deeds for any liens and fixes any problems that arise.
Once the Title Company has recognized the legitimacy of the title and identified any liens against the property, the Title Company will issue an insurance policy. The Insurance Policy provides protection for the property during the purchase process, right through to the date of closing on the home. This is known as an insurance binder.
The insurance offered by the Title Company is of a temporary nature, and will only be in effect until the closing is complete and a fresh title is issued to the new owners. The key requirements of the Title Company, after the binder has been issues is to facilitate a smooth closing of the property while ensuring that the purchase is processed correctly.