Title insurance in New Jersey

By purchasing title insurance in New Jersey, you ensure that the property you are purchasing is free of hidden claims or defects in the title. 

This protection ensures that any problems related to the property’s past will not jeopardize your investment. 

Likewise, our NJ real estate attorney, is here to help you every step of the way.

Definition and use of Title Insurance in New Jersey in 2025

Title insurance provides coverage for future claims or losses due to past defects in the real estate title. 

That is, title insurance provides coverage for an event that occurred prior to the acquisition of the property. 

Why is it important to have title insurance in New Jersey?

Title insurance is important because real estate is considered the most valuable asset for a family. It also represents a form of wealth that is protected by various laws. 

These laws protect both the ownership of a property and the improvements made on the land. The owners, their family and heirs have rights over the acquired property.

What can happen if I don’t have insurance?

• Without title insurance, you may purchase a property without knowing that there are claims or liens affecting it. 
• This means that those rights will continue to be tied to the title of the property, which could put your investment at risk. 

Is title insurance required in New Jersey? 

Title insurance is not required by law to purchase real estate in New Jersey. However, it is recommended. Additionally, many lenders require the buyer to purchase title insurance as part of the closing process.

When an attorney applies for title insurance at the closing of a property, the agency in charge conducts a search of public records to identify possible defects.

It is important to note that title issues that arise after closing are not covered by insurance since they were not known at the time of the transaction.

What risks are covered by title insurance in New Jersey?

Title insurance in New Jersey covers several risks that may affect the interest of the buyer and the mortgage lender related to a defective property title. Some of these risks include:

• Forged documents.
• Third party claims.
• Incorrect New Jersey property deed.
• Disputes over property boundaries.
• Errors in registered documents.
• Encroachments.
• Easements.

These problems can affect your ownership rights and title insurance provides protection against them.

What are the types of title insurance in New Jersey?

In New Jersey, there are 2 main types of title insurance:

Owners policy

This policy protects the buyer and is generally issued for the amount of the purchase price of the property. 

It typically remains in effect as long as the owners or their heirs retain an interest in the property. In addition to identifying risks before the transaction is completed, it covers valid claims and all costs of defending against attacks on the title.

Loan policy

This policy protects the lender by guaranteeing the validity, priority and enforceability of its lien or mortgage. It is also issued for the amount of the loan and the liability decreases as the mortgage debt is reduced.

It is advisable to consult with your attorney about the exact cost and application process for each type of policy.

Will I receive a clear transfer of title if I have title insurance in New Jersey?

Generally, by having title insurance in New Jersey, you have a greater chance of receiving a marketable title in Real Estate. 

This insurance provides you with essential protection by ensuring that any claims or defects in title are identified and resolved before the purchase is finalized. 

This means that you can purchase the property with confidence, knowing that your title will be free of problems that may affect your ownership in the future.

How do you know if there are claims on the property?

To find out if there are any claims related to a property, it is essential to conduct a thorough search of public records. 

There are several companies that carry out this meticulous search to locate documents associated with the property. 

During this process, records are examined to identify any rights or claims that may affect the title to the property.

What can be found through a property title search?

A New Jersey property title search may reveal the existence of recorded defects or liens including:

• Legal claims, 
• Unpaid taxes, 
• Unsatisfied mortgages, and
• Other liens that may affect current or previous owners.

By doing this research, you will be able to learn about any legal issues that may exist before purchasing the property.

Who pays for title insurance in NJ?

Title insurance in New Jersey is paid for by the home buyer. The fee for this policy is part of the closing costs for a home in New Jersey.

In New Jersey, the cost of the policy is only a nominal fee that is added to the owner’s premium. 

Can I negotiate title insurance costs in New Jersey? 

In most cases, title insurance costs in New Jersey are non-negotiable. 

However, you can ask your agent to try to negotiate for the seller to assume this expense. Additionally, if the property is resold in less than 5 years, title insurance costs may be waived in certain situations.

What is the average cost of title insurance in New Jersey?

The average cost of title insurance in New Jersey is typically between 0.5% and 1.0% of the property’s sales price. 

These costs are usually included in the closing costs. Below is a rough breakdown of the cost per thousand dollars of the home’s value:

• $0 – $100,000: $5.25.
• $100,001 – $500,000: $4.25.
• $500,001 – $2 million: $2.75.
• More than $2 million: $2.

As we have seen, although it is not mandatory, it is recommended to have title insurance to protect your investment. 

In most states, the title insurance rate is set by the Department of Insurance.

How much is a title fee in New Jersey?

In New Jersey, title fees typically account for between 0.5% and 1% of the home’s sales price. 

These costs are typically incorporated into the closing costs of a home in New Jersey.

What happens to undiscovered claims on property titles in New Jersey?

Undiscovered claims can pose a serious risk to the title you have acquired, as they can lead to the total loss of your title. 

These claims (considered hidden risks) are situations or rights that are not publicly recorded. Therefore, they cannot be identified through a conventional search of the records.

Examples of these hidden risks include:

• Forgery,
• Fraudulent impersonations,
• Incompetence or incapacity of the parties involved, and
• Unknown errors in the logs. 

These problems can lead to claims after you have already purchased the property.

To protect against this possibility, title insurance offers coverage for such claims, giving you an extra layer of security. By having this type of insurance, you can rest easier knowing you are protected.

How do you get title insurance in New Jersey?

Title insurance is obtained by paying a one-time premium at the closing of the real estate transaction. 

To acquire title insurance in New Jersey, it is advisable to work with a title insurance company or a specialized service that performs a thorough search of public records. 

This ensures that any title defects that could affect your ownership are identified and addressed. 

Do you need assistance in understanding all of this? Don’t worry, you can contact us today. At our firm you will be able to find quality legal advice and also help with first-time homebuyer programs in New Jersey.

Frequently Asked Questions About Title Insurance in New Jersey

Is title insurance in New Jersey a fixed cost?

Although title insurance is not required by law in New Jersey, the cost of title insurance is set by state law. Title insurance costs the same regardless of the type of company used.

However, a portion of the insurance cost is reduced if the attorney provides information about a late title to the title company.  

What does title insurance in New Jersey not cover?

Title insurance may not provide coverage for the following:

• Financial Losses Caused by a Poor New Jersey Home Inspection.
• Infestation problems.
• Damage resulting from natural disasters, such as thunderstorms.
• Fire damage.

Insurance is very important and there are many types of insurance. For example, one of them is flood insurance in New Jersey which is highly recommended in this state. 

How long is title insurance valid in New Jersey?

Title insurance in New Jersey is valid as long as you remain the owner of the property. 

In fact, only when you decide to sell it will you have to issue a new policy in the name of the buyer. As for the lender’s policy, it is valid until the mortgage is paid in full.

Do I need to renew my title insurance in New Jersey?

There is no need to renew your title insurance in New Jersey, as it remains in effect for the life of the property. This continues even if it is inherited by your heirs. 

However, if you decide to refinance your property with a lender, you may need to purchase a new title insurance policy from that lender.

Curbelo Law can help you with title insurance in New Jersey

It is of great importance for a home buyer to protect themselves against the consequences of a defective title. Therefore, we invite you to call our Curbelo Law firm today to let us know about your case.

Our firm has over 10 years of experience dealing with all of these real estate matters. Therefore, you will be in good hands when it comes to knowing your possibilities.