Title insurance normally covers defects which do not appear in the public records. Title insurances indicates the title is insurable and not that it is without defects. In some cases when they do find a defect in the public records they will still sell you title insurance. However, if they do sell you the title insurance they will make a note of the defect in the policy and the policy will not cover the defect.
In South Carolina the buyer usually pays for the title insurance. There are two types of title insurance policies:
1. Mortgage policy which covers the amount of the mortgage only and is required by the lending institutions.
2. Owner’s policy which covers the owner’s equity plus the mortgage is there was one.
I always recommend that my clients purchase the owners policy. It is a small one time cost that insures your title as long as you own the property.
As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions. To look for homes anywhere in the tri-county area go to my website at http://www.carolinajoe.com/mls/
"Carolina Joe" Idleman