Upon receipt of the contract and earnest money the title company initiates a title search and issues a title report which discloses condition of the title prior to the issuance of title insurance. There are two forms of title insurance. Lender's or (mortgagee) title insurance is normally written in the amount of the mortgage and protects the lending institution from losses resulting from title defects. The premium is usually fixed at $175 and paid by the buyer. It expires when the mortgage is paid off. The second form of title insurance is the owner's (mortgagor) title policy. It usually is written for the amount of the purchase price of the home. The cost is determined from a basic rate table established by the state (roughly 1 percent) and is usually paid by the seller, although the buyer can pay it. This protection starts the day of the closing and lasts as long as you or your heirs retain an interest in the property. Title insurance is paid at the closing and you receive a copy of the title to your house.