What Is Title Insurance?

The more you know, right?!


This industry has a lot of terms that if you don't take the time out to learn about them, you're doing yourself a disservice. While the assumption is that all in this industry knows ALL there is to know about it, the truth is that not one person knows every single thing- which is why taking the time out to be a student is necessary from time to time.

Title insurance is one of those things where you hear it so often, that you don't even take the time to think about it!


Let's break this down:

1. What is a title?

Simply stated, the title to a piece of property is the evidence that the owner is in lawful possession of that property.

2. What is title insurance?

Title insurance protects real estate owners and lenders against any property loss or damage they might experience because of liens, encumbrances or defects in the title to the property. Each title insurance policy is subject to specific terms, conditions and exclusions.

3. What does it cover?

Title insurance protects against claims from defects. Defects are things such as another person claiming an ownership interest, improperly recorded documents, fraud, forgery, liens, encroachments, easements and other items that are specified in the insurance policy.

4. Who needs title insurance?

Purchasers and lenders need title insurance in order to be insured against various possible title defects. The buyer, seller and lender all benefit from issuance of title insurance.


Next up - we'll be talking about Escrow. Stay tuned for tomorrow's post!

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