Title Examination and Title Insurance

What is Title Examination and Title Insurance?
Title search and examination requires the search of numerous public documents including tax, court judgment, deed, encumbrance, federal and state records and the evaluation of real property characteristics such as flood zone and location. Abstractions, lawyers, title insurance agents and title insurance companies, sometimes called “underwriters”, all work together to accomplish this process.

What does Title Insurance do for me?
A Title Insurance Policy insures against many defects which could not be discovered in a title search, as well as insuring against errors made in the title search itself. As such, Title insurance is the acceptance of risk for past transnational events rather than future occurrence of events. Title insurance has a single one-time premium paid at closing, no termination date and no time limit on the filing of claims.

title insuranceThere are two basic types of Title Insurance
Lender or mortgage title insurance only protects the lender/investor as security for making mortgage money available to a buyer. It does not protect the buyer.

Owner’s title insurance protects the buyer, by covering the total purchase price. Owners’ title insurance lasts as long as you, the policyholder – or your heirs – has an interest in the insured property. This may even be after you have sold the property.

What does Owners Title Insurance do for me?
Most standard Owner’s Title Insurance Policies will provide the basic coverage for a property owner as follows:

  • Insures that you are the owner of the property.
  • Insures against losses from any liens or encumbrances on the property (unless listed or excluded).
  • Insures against your title being rejected by a subsequent buyer due to a title defect or lien.
  • It insures you have a legal right of access to the property.

Most Owners Title Insurance Policies will protect you against losses due to title claims covered by the policy, and pays for attorney’s fees and costs incurred to defend the title. You are covered under the policy for as long as you own the property, and also for liability after you sell the property if you provide title covenants in your deed to the new buyer.