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What is Title Insurance?

What is title insurance?

Title insurance is protection against loss if a defect is found in your title. When a property is purchased, the purchaser is given a title to the property that generally means they have legal ownership. However, sometimes there’s a hidden defect from a prior sale, mortgage, will, etc., that may give another party a valid legal claim against the property.



Who should be protected?

LENDER – When a property is purchased and the person is using a lender to borrow money, that lender will commonly require the buyer to purchase a lender’s title insurance policy. This covers the outstanding balance on the mortgage for the lender in the event of a defect but doesn’t cover the buyer.

BUYER – When acquiring property, it is recommended for the buyer to purchase an owner’s title insurance policy as it will provide maximum protection in the event that there is a claim against their property. A title insurance policy enables the buyer to enjoy peace of mind in protecting, often times, their largest asset.


What is a title search?

The title search is the first step in obtaining title insurance. It is a detailed examination of the records concerning the property including deeds, tax records, civil and probate court records, etc.

The purpose is to verify/ensure that the seller has the right to transfer ownership. The purpose is also to find any claims, errors, debts, assessments, or other restrictions on the property.


Do you have any additional questions?
Click here to see the answers to some of the most common questions and concerns about title insurance.

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