Is there any difference between escrows and owners title insurance?

Yes, there is.

An escrow is usually made up of an independent third party that will ensure that both parties - the seller and the buyer delivers what has been promised. As a show of good faith, both parties will deposit an agreed amount that will be kept by the third party until the transaction is completely closed. When one party fails to deliver on some terms of the transaction, the other party has the right to get a certain amount from the escrow.

In short, an escrow will protect the interests of both the buyer and the seller.

Meanwhile, owner's title insurance will protect the interests of the owner of the property. The insurance that protects a specific owner is only effective up until that owner retains the legal ownership of the property. When the property is transferred to a new owner, that specific title insurance policy ceases to be in force.

• I am refinancing my mortgage. Do I need to purchase a new title insurance policy?
• Do I need extended title insurance coverage for bare land?
• Is there a way for me to save on my title insurance fees?
• At what instances should I get extended coverage on title insurance?
• What value does a real estate lawyer add on top of title insurance?