When you refinance, you’re obtaining a new loan, but it’s for the same property, so many people think that title insurance doesn’t come into play here. Actually, it’s very likely that you will need title insurance when you refinance. Most lenders require a new title search to be executed and a new Loan Policy in order to protect their investment in the property which is being refinanced. There are issues that can come up with the title, such as a judgment placed on the property due to unpaid taxes or homeowner dues, which is why the lender will execute a new title search in order to keep abreast of any issues. However, you won’t need a new Owner’s Policy because this is good as long as you or any heirs have an interest in the property. Overall, the takeaway here is that yes, you do need title insurance when you refinance in Maryland.
About Colony Title Associates:
Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years of experience in the title and real estate law fields. Colony Title Associates handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.
Colony Title specializes in real estate title insurance, real estate settlement services, and real estate closings in Baltimore, Columbia, Maryland, Washington DC, and Virginia. Our staff consists of licensed Title Insurance Agents, Real Estate Agents, Settlement Processors, & Attorneys to handle all of your real estate needs.