This is the first post in our Ask the Title Expert Series at the myClosingSPACE.com blog. The goal of this series to explore the questions that consumers or even real estate professionals have about title insurance and closing services. If you have any questions please take the time to ask it here or email me.

Without further ado I will move on to the first few questions, which come from our Director of Customer Service Annette Leoncini. These are questions she is asked regularly by customers who are shopping for title insurance.

Question 1: Why do I need title insurance if I buy a brand new home?
Answer: Let me give you an example. What if the builder of your new home never paid off a mechanic’s lien against the property and the lien wasn’t filed until 2 pm the day of your closing and your closing was scheduled for 3 pm? It is now of record, but may not have been included in the original property search. The lien goes with the property, not the builder or previous owner. If the builder refused to pay the lien after the closing took place, you would have to then either sue the builder, which could be very costly, or pay the lien. Title insurance will protect you from this scenario.

Question 2: Why should I use my own title company and not the title company my attorney recommended?
Answer: Because while your attorney (or mortgage broker, realtor, etc) may have your best interests at heart in many cases they have a financial incentive in recommending a title company. Even though it violates RESPA guidelines many title companies pay other real estate professionals for their business. This kickback is factored into the cost of the service the title company provides and is passed on to you, the consumer. By shopping for title insurance on your own you will be able to compare quotes and feel out the different companies. Armed with this information you can choose the title company that offers the best price and most friendly service instead of the company that is paying your lawyer to send them business. Think about it, you don't have your car dealer recommend auto insurance. Why would you let your lawyer choose your title insurance provider.

Question 3: How Do I Pay for Title Insurance?
Answer: All costs associated with your title insurance will be paid at your loan closing. There should be no deposit or any up-front fees. Title companies do not get paid until your transaction closes and if a company asks for a deposit you may want to look more deeply into their practices.

That is for the first part of this series. If you want further clarification please feel free to ask me here. If you have some questions you would like to see answered please leave them here or send me an email here.