Over the past few years, advertisements for “Title Lock” and similar title monitoring services have become increasingly common. These advertisements often warn homeowners about “title theft” and suggest that your home could be stolen without your knowledge.
While title fraud is a real concern, these advertisements can leave homeowners with the mistaken impression that Title Lock provides the same protection as an owner’s title insurance policy.
It does not.
Understanding the difference between the two products is essential.
What Is Owner’s Title Insurance?
An owner’s title insurance policy protects your ownership rights to your home.
When you purchase a home, a title examination is performed to uncover problems affecting the property’s ownership. Even the most thorough title search, however, cannot reveal every possible issue. Hidden defects can surface years after closing.
An owner’s title insurance policy protects against many covered title defects, including:
* Forged deeds
* Fraudulent signatures
* Unknown or missing heirs
* Recording errors
* Undisclosed liens
* Clerical mistakes in the public records
* Other covered defects that existed before you purchased your property
If someone later claims an ownership interest in your home because of a covered title defect, your owner’s title insurance policy generally will:
* Provide legal representation to defend your ownership.
* Pay covered legal expenses.
* Compensate you for covered financial losses, up to the policy limits.
Best of all, you pay for the policy only once at closing, and the protection generally lasts for as long as you or your heirs own the property.
What Is Title Lock?
Title Lock is not insurance.
Instead, it is a title monitoring service.
Much like a credit monitoring service watches your credit reports for suspicious activity, Title Lock monitors public land records and alerts you if documents are recorded against your property.
For example, it may notify you if someone records:
* A deed
* A mortgage
* A lien
* Another document affecting your property’s title
Receiving an alert can help you learn about suspicious activity sooner, but that is where the protection largely ends.
What Title Lock Does Not Do
One of the biggest misconceptions is that Title Lock prevents title theft.
It does not.
County and registry recording offices generally record documents that meet the legal recording requirements. They do not verify whether every signature is genuine or whether the transaction itself is legitimate.
If a fraudulent deed is recorded, Title Lock may notify you after the recording has already occurred.
However, Title Lock generally does not:
* Prevent the fraudulent recording.
* Restore your ownership.
* Pay your attorney to clear your title.
* Reimburse you for financial losses resulting from the fraud.
In other words, it alerts you to a potential problem—it does not insure against the consequences.
Which Protection Is More Important?
If you could choose only one, an owner’s title insurance policy provides significantly greater protection.
Unlike a monitoring service, owner’s title insurance offers real financial protection and a legal defense against covered title claims.
Title Lock may provide an early warning if suspicious activity occurs, but it is not a substitute for title insurance.
Some homeowners choose to have both. In that situation, Title Lock serves as an alert system while owner’s title insurance provides the legal and financial protection that truly matters.
The Bottom Line
The names may sound similar, but they serve very different purposes.
**Owner’s Title Insurance**
* Protects your ownership rights.
* Pays covered legal fees and financial losses.
* Is purchased once at closing.
* Remains in effect for as long as you own the property.
**Title Lock**
* Monitors public records.
* Alerts you when documents are recorded against your property.
* Requires an ongoing subscription.
* Does not provide insurance coverage or pay covered legal expenses.
If you are purchasing a home, don’t confuse a title monitoring service with the protection provided by an owner’s title insurance policy. They are not the same.
At the Law Offices of Scott M. Syat, P.C., we believe every homebuyer should understand exactly what protections they are—and are not—receiving. If you have questions about owner’s title insurance or any aspect of your real estate closing, we’re happy to help.
**Call the Law Offices of Scott M. Syat, P.C. at (617) 773-3500 to discuss how owner’s title insurance protects one of your most valuable investments—your home.**