Comprehensive Guide to Real Estate Legal Services in Morristown
Buying, selling, or managing property in Morristown involves more than paperwork; it requires clear legal guidance to protect your interests and to help transactions proceed smoothly. At Jay Johnson Law Firm, our team focuses on practical, locally informed approaches for real estate matters in Hamblen County and surrounding areas. We assist clients with contract review, title concerns, deed preparation, closing coordination, and dispute resolution. Whether you are a first-time buyer or an experienced property owner, our goal is to provide straightforward advice, reduce surprises, and keep your transaction on track while explaining each step in plain language.
Real estate matters often involve tight timelines and multiple parties, from lenders and agents to title companies and municipal offices. Effective legal help can minimize delays and unexpected costs by identifying risks early and addressing them proactively. We work to clarify contractual obligations, assist with due diligence, and communicate with other professionals on your behalf. Our approach centers on clear communication, timely action, and practical solutions that reflect local market realities in Morristown. Throughout every transaction we emphasize predictable outcomes and steady guidance so you can make informed decisions with confidence.
Why Solid Real Estate Legal Support Matters in Morristown
Strong legal support for real estate matters protects your financial interests and reduces the chance of disputes that can be time consuming and costly. An experienced real estate practice reviews documents for hidden obligations, checks title issues, identifies zoning or land use concerns, and helps negotiate contract terms that are fair and clear. For sellers, buyers, landlords, and investors, proactive legal attention can prevent surprises at closing, limit liability exposure, and streamline transfers of ownership. In contested situations, legal representation can preserve rights, pursue remedies, and help clients reach practical resolutions that reflect their priorities.
About Jay Johnson Law Firm and Our Local Real Estate Practice
Jay Johnson Law Firm serves clients throughout Hamblen County from offices rooted in Tennessee practice and procedures. Our attorneys combine knowledge of local property markets with a commitment to client communication and efficient case management. We handle residential and commercial transactions, title work, closing coordination, and dispute matters for property owners, buyers, sellers, landlords, and tenants. Clients appreciate our hands-on approach to problem solving, our responsiveness by phone and email, and our focus on achieving timely results. We strive to make real estate matters less stressful by offering clear next steps and steady guidance from initial consultation through closing or resolution.
Understanding Real Estate Legal Services in Morristown
Real estate legal services encompass a range of tasks that protect ownership rights and facilitate transactions. Common services include drafting and reviewing purchase agreements, preparing and reviewing deeds, conducting title searches, resolving boundary or easement disputes, advising on financing contingencies, and coordinating with lenders and title companies. These services are tailored to the needs of buyers, sellers, investors, and property managers. A lawyer can help ensure that documents are properly drafted, that title issues are addressed before closing, and that transaction timelines align with the parties expectations, reducing the likelihood of last-minute delays or unexpected liabilities.
In addition to transactional work, real estate legal assistance can cover landlord-tenant matters, short-term lease drafting, negotiation of commercial leases, and assistance with property tax assessment appeals. When disputes arise, such as breach of contract, title claims, or boundary disagreements, a lawyer can present options for resolution through negotiation, mediation, or litigation when necessary. Providing guidance throughout a transaction helps clients weigh risks and make decisions that align with their financial and personal goals, whether they are purchasing a family home or managing a portfolio of investment properties in the local area.
What Real Estate Legal Services Include
Real estate legal services cover the legal processes involved in transferring, owning, and managing property. This includes drafting and reviewing contracts, ensuring compliance with local land use and zoning rules, addressing title issues and liens, preparing closing documents, and assisting with mortgage-related matters. Lawyers also help with lease agreements, property disputes, and representation in court when disagreements escalate. The role of legal counsel is to identify potential legal problems, explain the effects of contract terms, protect clients from unexpected obligations, and help structure transactions to meet client objectives while complying with Tennessee law and local Hamblen County requirements.
Key Elements and Typical Processes in Real Estate Transactions
A typical real estate transaction involves multiple coordinated steps, including negotiation of the purchase agreement, completion of due diligence such as inspections and title searches, resolution of any title or survey issues, securing financing, and preparing closing documents. Each step requires accurate documentation and timely communication among parties. Attorneys often help interpret contingency language, negotiate repairs or credits after inspection, coordinate with title companies to clear encumbrances, and ensure closing proceeds smoothly. When issues appear, proactive legal attention can keep a transaction moving forward by addressing concerns before they become impediments to closing.
Key Real Estate Terms and Glossary for Morristown Property Matters
Understanding commonly used real estate terms helps clients make informed decisions and avoid misunderstandings. Familiarity with terms such as title insurance, deed of conveyance, easement, encumbrance, contingency, and closing statement enables better evaluation of documents and transaction risks. A lawyer will clarify these terms in plain language and explain how they apply to your specific situation. We aim to demystify legal language so you know what obligations you are accepting, what protections are available, and what to expect during closing or dispute resolution processes in Hamblen County and Morristown.
Title and Title Insurance
Title refers to the legal right to own and use a property. Title issues can include undisclosed liens, prior ownership claims, easements, or recording errors that may affect clear ownership. Title insurance is a policy that protects a buyer or lender against losses from covered title defects that were not discovered during the title search. Purchasing title insurance is a common safeguard to reduce financial risk from unforeseen claims. During a transaction, a title search and review help identify issues that should be resolved before closing so the purchaser receives clear and marketable title.
Easements and Access Rights
An easement is a legal right that allows someone to use part of another person’s property for a specific purpose, such as a driveway, utility access, or pathway. Easements can limit how a property owner uses a portion of the land and may affect development plans or privacy. Easements can be recorded, implied, or established through long-standing use. Understanding existing easements is important before buying property so the owner knows potential limitations. Legal review can clarify the scope and terms of any easement and help negotiate resolutions or adjustments when an easement creates unexpected limitations on the property.
Deeds and Conveyance
A deed is the formal legal document that transfers ownership of real property from one party to another. Different deed types, such as warranty deeds or quitclaim deeds, vary in the protections they provide to the buyer. Proper deed preparation and recording are essential to establish clear ownership and protect against future claims. Conveyance involves the process of transferring title and ensuring that all necessary documents are properly executed and recorded with the county. Legal review ensures the deed accurately reflects the terms agreed upon and that recording requirements are met.
Contingencies and Contract Conditions
Contingencies are conditions included in a purchase agreement that must be satisfied before the transaction can proceed to closing. Common contingencies cover financing approval, satisfactory home inspection results, appraisal value, and title clearance. Contingencies protect buyers by allowing them to withdraw or renegotiate under specified circumstances, but they must be drafted clearly to avoid disputes. Sellers may also use contingencies to protect their interests. A lawyer can help craft contingency language that aligns with your goals and explain the consequences of failing to meet a condition so you understand your options.
Comparing Limited Assistance and Comprehensive Real Estate Legal Services
When pursuing real estate legal help, clients can choose limited-scope assistance for discrete tasks or broader services that address the whole transaction from start to finish. Limited assistance might include a single document review or a brief consultation, which can be cost effective for straightforward matters. Broader services provide continuous involvement through negotiation, due diligence, title resolution, and closing oversight. The right approach depends on your comfort with handling parts of the transaction, the complexity of the deal, and the level of risk you are willing to accept. We discuss options during an initial consultation to align services with client needs and budgets.
When Limited-Scope Real Estate Assistance May Be Appropriate:
Simple Transactions with Clear Terms
Limited legal assistance can be appropriate when the transaction is straightforward, the contract terms are standard, and the parties have a clear understanding of their obligations. For transactions with clean title searches, no unusual easements or zoning concerns, and reliable financing in place, a focused review of the purchase agreement and closing documents may provide the protection a client needs without full representation. This approach can be efficient when a client only needs confirmation that documents are reasonable and that no obvious legal pitfalls exist, particularly for familiar or low-risk purchases.
Experienced Parties or Simple Investor Transactions
A limited-scope arrangement may also suit experienced buyers, sellers, or investors who handle many routine transactions and are comfortable managing aspects like inspections and coordination with title companies. In such cases, targeted legal work such as drafting a lease, reviewing a sales contract, or advising on a specific title issue can add valuable protection without comprehensive management. The decision to pursue limited help should consider the client’s familiarity with closing procedures and willingness to address logistical steps independently so legal assistance remains focused and cost effective.
Why a Comprehensive Real Estate Approach Can Be Beneficial:
Complex Transactions or Title Concerns
Comprehensive legal involvement is often advisable when transactions present complexity, such as unresolved title issues, boundary disputes, complicated financing arrangements, or development plans requiring permits and zoning review. In these situations, continuous legal oversight helps ensure problems are identified early and addressed systematically. The attorney coordinates with surveyors, title professionals, lenders, and other parties to resolve encumbrances and to protect the client’s interests. Full-service representation provides continuity from negotiation through closing, which helps reduce the chance that critical issues will be overlooked.
Disputes, Litigation Risk, or High-Value Deals
When a real estate matter involves potential disputes, contested title claims, or substantial financial exposure, comprehensive legal support is valuable for protecting rights and preparing for possible litigation or formal dispute resolution. For high-value purchases, commercial deals, or transactions with multiple stakeholders, an attorney helps craft agreements, negotiate protections, and plan contingencies that limit future risk. This level of service includes active management of timelines, document preparation, and strategies to resolve conflicts efficiently while preserving the client’s negotiating position and long-term interests.
Benefits of a Full-Service Real Estate Legal Strategy
A comprehensive legal approach provides holistic support across every phase of a real estate transaction, reducing the chance of costly oversights and ensuring consistent advocacy. Clients receive coordinated attention to title matters, contingencies, financing, and closing logistics, which can shorten timelines and improve predictability. By handling negotiations, resolving unexpected issues, and communicating with third parties, legal representation streamlines the process and helps protect the client’s financial position. This approach is especially valuable when transactions are complex or when there is limited room for error.
Comprehensive services also aid in long-term planning, such as advising on estate considerations tied to property ownership, structuring ownership for liability protection, and guiding decisions that affect future transfers. Continuous legal oversight supports practical problem solving and helps preserve value by addressing issues before they escalate. Clients benefit from a single point of contact who understands the transaction’s history and objectives, which can reduce confusion, accelerate responses to obstacles, and provide a clearer path to a successful closing or resolution.
Reduced Risk of Title or Contract Problems
A primary advantage of comprehensive legal involvement is the reduction of risks tied to title defects, ambiguous contract language, and unenforceable terms. Legal review and coordination with title services help identify and clear liens, easements, or recording issues prior to closing. Clear contract drafting and negotiation prevent misunderstandings and set practical expectations for all parties. When problems arise, having counsel already engaged allows quick response to protect the client’s position and to work toward remedies without significant interruption to the transaction timeline.
Smoother Closings and Better Coordination
Comprehensive legal management promotes smoother closings by coordinating among lenders, title companies, real estate agents, and other stakeholders involved in the transaction. This proactive coordination helps ensure documents are prepared and reviewed in advance, contingencies are met on schedule, and any required corrections are completed before closing. The result is fewer delays, a more predictable timeline, and a closing experience that minimizes last-minute surprises. Clients benefit from clear communication and steady management through the final transfer of ownership.
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Pro Tips for Smooth Real Estate Transactions
Start Title Checks Early
Begin the title search and review as early as possible in the process to surface any liens, clouded title, or recording discrepancies that could delay closing. Early discovery allows time to resolve encumbrances, obtain releases, or negotiate credits without jeopardizing scheduled closing dates. Taking care of title issues up front reduces stress for all parties and helps maintain momentum during the transaction. Timely action also enables informed discussions about resolution options and keeps the buyer and seller aligned on next steps toward a successful transfer of ownership.
Clarify Contract Contingencies
Coordinate All Parties Early
Coordinate with lenders, title companies, real estate agents, and any required inspectors or surveyors early in the process to set timelines and identify responsibilities. Proactive coordination helps prevent scheduling conflicts and ensures that required documents are available for timely review. When everyone understands the timeline and their role, the closing process is more predictable and efficient. Clear communication among stakeholders reduces the likelihood of last-minute document requests or missed deadlines that could disrupt the closing or increase transaction costs.
Reasons to Consider Legal Assistance for Real Estate
People seek legal assistance in real estate transactions to protect their investment, to clarify contractual obligations, and to reduce the risk of post-closing disputes. Legal review of contracts and title work helps identify hidden obligations, easements, or liens that could affect ownership or use. For sellers, legal oversight ensures proper deed preparation and transfer of title. For buyers, counsel helps confirm that closing proceeds only after title is clear and contingencies are resolved. Legal guidance also supports negotiation of repair requests, contract amendments, and favorable closing terms.
Another reason to involve legal assistance is to handle complex or high-stakes transactions, such as commercial purchases, property with unusual access issues, or estates that include real property. In these scenarios, legal guidance helps navigate regulatory requirements, coordinate with other professionals, and plan for potential tax or ownership consequences. Even in routine transactions, having someone review key documents and check title can prevent common pitfalls and promote a smoother closing experience for all parties involved.
Common Situations That Lead People to Seek Real Estate Legal Help
Clients often reach out for legal help when they encounter unclear title records, disputed property boundaries, problematic easements, or financing contingencies that threaten closing. Other common triggers include unresolved homeowner association obligations, seller disclosures that require legal review, and landlord-tenant disputes that affect property value or use. When any of these circumstances arise, legal involvement helps identify practical solutions, negotiate settlements, and pursue formal remedies when necessary. Early legal engagement often prevents escalation and helps maintain progress toward resolution or closing.
Title or Lien Discrepancies
Title or lien discrepancies discovered during a title search require careful resolution before closing can proceed. Claims, unpaid liens, or recording errors can cloud title and expose a buyer to future claims. Addressing these issues may involve obtaining lien releases, correcting public records, or negotiating credits. Legal support helps identify the appropriate remedy and coordinates with title companies and creditors to clear encumbrances so that the buyer receives marketable title at closing. Early detection of title issues increases the chances of timely resolution.
Boundary and Easement Conflicts
Boundary disputes and unclear easement rights can impact property use and value. If surveys reveal discrepancies or neighbors assert competing claims, legal review can determine rights and recommend steps to resolve the issue. Solutions may include negotiating new access agreements, obtaining clarified survey results, or pursuing quiet title actions when appropriate. Timely attention is important because unresolved boundary or access issues can complicate sales, inhibit development, or create persistent disputes that diminish enjoyment and utility of the property.
Problems with Contractual Contingencies
When inspection results, appraisal values, or financing approvals do not meet contractual contingencies, parties must decide how to proceed under the contract terms. Legal guidance helps interpret contingency language, evaluate options such as renegotiation, request for repairs, or contract termination, and advise on potential liabilities. Clear legal advice at this stage supports reasoned decisions that align with a client’s goals and risk tolerance, while minimizing the likelihood of disputes and protecting the client’s rights under the agreement.
Local Real Estate Legal Support in Morristown
Jay Johnson Law Firm is ready to assist property owners, buyers, and sellers throughout Morristown and Hamblen County with practical legal guidance tailored to local needs. We provide responsive attention to document review, title matters, closing coordination, lease preparation, and dispute resolution. Our approach emphasizes clear communication and timely action so clients can move forward with confidence. Contact our office to discuss your real estate matter, learn about available options, and get straightforward information about costs and timelines relevant to your transaction in the local market.
Why Choose Jay Johnson Law Firm for Your Real Estate Matter
Clients choose our firm for real estate matters because we combine local knowledge of Hamblen County procedures with a practical approach to transaction management. We focus on clear document review, timely resolution of title issues, and steady coordination with lenders, title companies, and other stakeholders. Our priority is to provide realistic assessments and actionable next steps so clients understand their options and obligations. We keep communication straightforward and aim to reduce surprises so each transaction proceeds efficiently toward closing or resolution.
We also provide guidance for landlords and tenants, commercial lease negotiations, and matters involving property use and zoning. Our involvement helps clients protect ownership interests, manage liability exposure, and craft agreements that reflect negotiated terms. Whether the need is for a careful review of closing documents, assistance resolving a title discrepancy, or support in negotiating a commercial lease, we focus on producing practical outcomes that meet the client’s goals within the timelines relevant to the transaction.
Accessible communication is a key part of our service. We respond promptly by phone and email, explain legal implications in plain language, and provide clear timelines and cost expectations. Our collaborative approach with other professionals involved in a transaction helps minimize delays and align efforts toward a successful closing. Clients appreciate working with a team that values responsiveness and practical solutions tailored to the Morristown market and Tennessee procedural requirements.
Contact Our Morristown Real Estate Team Today
How We Handle Real Estate Matters at Jay Johnson Law Firm
Our process begins with a focused intake to understand the property, transaction goals, and any immediate concerns such as title conditions or contingencies. We then outline recommended steps, identify necessary third-party providers like surveyors or inspectors, and set a timeline for document review and closing milestones. Throughout the process we keep clients informed about risks, proposed solutions, and timing. If disputes arise, we present resolution options and next steps. This structured approach helps manage expectations and keeps the transaction progressing toward a timely conclusion.
Initial Review and Due Diligence
The initial review and due diligence phase involves careful examination of the purchase agreement, title commitment, survey documents, and any disclosures provided by the seller. We identify potential title defects, easements, covenants, or zoning issues that could affect property use or value. This stage also includes confirming financing contingencies and scheduling necessary inspections. Addressing issues early in the due diligence period allows time for negotiation, corrective actions, or contingency removal so the client can make informed decisions prior to finalizing the transaction.
Contract and Document Review
During contract review we analyze key terms that affect closing timelines, obligations for repairs, allocation of closing costs, and contingency conditions. We explain each clause in plain language and recommend edits when needed to protect the client’s interests. Clear contract language reduces ambiguity and the likelihood of disputes later in the cycle. Where appropriate, we negotiate terms with the other party to align expectations and to minimize barriers to a timely and efficient closing.
Title Examination and Survey Review
A thorough title examination and survey review identify liens, easements, or boundary issues that could impact ownership or use. We work with title professionals to confirm the status of encumbrances and recommend steps to clear any problems before closing. When survey discrepancies appear, we coordinate with surveyors to resolve conflicting boundaries or to clarify access rights. Ensuring title is marketable and that recorded information matches the physical property helps protect a buyer’s investment and avoids post-closing claims.
Negotiation and Resolution
If due diligence reveals issues, the negotiation and resolution stage focuses on addressing them efficiently through negotiation, correction, or agreed credits. This may involve negotiating repairs, obtaining lien releases, clarifying easements, or amending contract terms to reflect the parties’ revised agreement. We communicate with the other side and their representatives to reach practical solutions that allow the transaction to move forward where possible. The goal is to resolve issues without unnecessary delay while protecting the client’s rights and financial position.
Addressing Inspection and Repair Issues
When inspections identify condition concerns, we help evaluate repair requests versus credits or price adjustments and draft clear amendment language to document agreed changes. Legal involvement ensures that repair obligations, deadlines, and verification procedures are explicit so both parties understand expectations. Properly documenting negotiated outcomes reduces the risk of disagreement at closing and helps ensure the buyer receives the protections intended by the agreement.
Clearing Title and Recording Requirements
Resolving title matters often requires securing lien releases, correcting public records, or obtaining title endorsements. We coordinate with title companies and relevant parties to ensure encumbrances are removed and that required documents are ready for recording at closing. Confirming recording requirements and preparing accurate deed language helps prevent post-closing complications and ensures the transfer of ownership is properly reflected in county records.
Closing and Post-Closing Follow-Up
During closing we ensure all necessary documents are properly executed, funds are disbursed according to closing statements, and required recordings are completed. After closing, we confirm that the deed has been recorded and that title insurance policies have been issued where applicable. Post-closing follow-up may include advising on property tax filings, assisting with transfer of utilities or HOA notifications, and addressing any lingering recording matters. This final phase is designed to confirm a clean transfer and to address residual tasks that complete the transaction.
Document Execution and Funding
At closing we oversee the proper execution of deeds, affidavits, and settlement statements to ensure all legal formalities are satisfied. We verify that mortgage documents and lender requirements are in place and that funds are disbursed according to agreed terms. Confirming that signatures and notarizations are correct reduces the potential for post-closing disputes and helps secure a valid transfer of ownership in compliance with local recording practices.
Recording and Final Confirmation
After closing, recording the deed and related documents establishes the public record of ownership. We follow up to confirm successful recording and to verify issuance of title insurance policies when applicable. Post-closing review also includes confirming any required filings with local authorities, assisting with tax transfer matters, and ensuring the client has final copies of all transaction documents. This attention to post-closing tasks helps bring closure to the process and provides clients with assurance that the transfer is complete.
Frequently Asked Questions About Real Estate Transactions in Morristown
What should I expect during a real estate closing in Morristown?
A real estate closing involves reviewing and signing final documents, disbursing funds, and ensuring the deed is properly executed and delivered. Parties typically review the settlement statement to confirm agreed payments, prorations, and closing costs. The deed and any mortgage documents are signed and notarized when required, and funds are transferred through the closing agent or escrow. After signatures are complete, the documents are submitted for recording with the county clerk to place the transfer in the public record. The process is coordinated to confirm that all parties understand the final financial and legal terms before funds change hands.
How early should I start a title search and review?
Begin the title search and review as early as possible after entering into a contract to identify liens, claims, or recording issues that could affect marketable title. Early review allows time to address problems such as unpaid taxes, mechanic liens, or errors in public records that might otherwise delay closing. A timely title search and communication with the title company and seller can resolve many issues before they become obstacles. Starting early also provides more room for negotiation or corrective action if encumbrances require resolution prior to closing.
What happens if a lien appears on the title before closing?
If a lien appears on title before closing, it must be addressed before the buyer can receive clear title. Solutions may include obtaining a lien release from the creditor, negotiating a payoff at closing, or seeking an escrow arrangement to resolve the claim. The appropriate response depends on the lien type and the parties’ willingness to resolve it. Legal guidance can help determine the best route to clear the lien, coordinate necessary communications, and ensure the buyer is protected from future claims arising from the encumbrance.
Do I need a lawyer to buy or sell residential property?
While not every residential transaction legally requires a lawyer, having legal review can prevent missteps and protect against hidden liabilities. A lawyer can help interpret contract terms, review title matters, advise on contingencies, and coordinate closing documents to ensure a smooth transfer. For buyers and sellers who want to reduce risk and gain clarity about obligations and protections, a legal review offers additional assurance. For more complex transactions or when title or boundary issues appear, legal involvement can be particularly beneficial to achieve an orderly closing.
How are boundary disputes typically resolved?
Boundary disputes are typically resolved through negotiation between adjacent owners, clarification via an updated survey, or through recorded agreements that define access and use. When negotiation is not possible, a formal quiet title action or declaratory judgment may be necessary to establish legal ownership boundaries. Legal assistance helps evaluate the strength of competing claims, coordinate surveys, and pursue the appropriate remedy. Early steps often involve gathering records, obtaining an accurate survey, and seeking a practical resolution to avoid prolonged conflict and preserve property value.
What should landlords in Morristown include in a lease agreement?
Landlords should include clear terms regarding rent amount and due dates, security deposit handling, maintenance responsibilities, permitted uses, notice requirements, and procedures for lease termination. Clauses that address tenant obligations, repair timelines, and access for inspections help reduce misunderstandings and disputes. Including provisions that reflect local rules and Tennessee landlord-tenant laws ensures enforceability. A legal review of lease terms can tailor the document to the property type and management needs while clarifying landlord and tenant expectations for smooth occupancy and effective dispute prevention.
How do easements affect property ownership and use?
Easements grant others specific usage rights over part of your property and can affect development plans, privacy, and access. Easements may be recorded or arise from long-term use, and they remain attached to the property even after ownership changes. Reviewing public records and the title report helps identify any easements that could limit certain uses. When easements present concerns, legal consultation can clarify the scope and seek possible remedies or negotiated adjustments to ensure property use aligns with the owner’s plans and interests.
What options exist if an inspection reveals significant defects?
If an inspection reveals significant defects, buyers and sellers typically negotiate remedies such as seller-performed repairs, a credit at closing, or a price reduction. The choice depends on the severity of defects, the parties’ willingness to negotiate, and timing relative to closing deadlines. Legal advice helps interpret inspection contingencies, draft clear amendment language reflecting agreed resolutions, and ensure that repair obligations are enforceable. In some instances, buyers may elect to terminate under the contingency if the issues are unacceptable and the contract permits withdrawal.
How can I confirm that a deed has been properly recorded?
You can confirm recording by checking the county clerk or register of deeds online records after the closing documents are submitted. The recorded deed should show the new owner’s name and the recording details such as book and page or document number. Title companies and closing agents often provide confirmation when recording is complete, and legal counsel can follow up to verify successful recording. Confirming the recording protects ownership rights and ensures the transfer appears in the public record, which is important for future transactions or tax matters.
What role does title insurance play in a real estate transaction?
Title insurance protects against losses from covered title defects that were not discovered during the initial search, such as undisclosed heirs, forged documents, or clerical errors. Lenders often require a lender’s policy, and buyers commonly purchase an owner’s policy to protect their financial interest. Title insurance provides a layer of financial protection if a covered claim arises after closing and the title company must defend the insured or compensate for covered losses. Understanding the scope and limits of title insurance is an important part of protecting a real estate investment.