TITLE INSURANCE

Title insurance protects against financial loss due to defects in title to real property and from the invalidity or unenforceability of mortgage liens. Title insurance was developed and sold in the United States as a result of the comparative deficiency of the US land records laws. It is meant to protect an owner's or a lender's financial interest in real property against loss due to title defects, liens or other matters. It will defend against a lawsuit attacking the title as it is insured, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy.

There are two types of policies: an owner policy, which provides protection to the property owner, and a mortgagee (or loan) policy, which offers protection to the mortgage lender and its assigns. These two policies are separate and distinct. If the lender requires title insurance as a condition of making a mortgage loan, it is the lender who is insured, not the owner, even though the lender's title policy is usually paid for by the buyer. If the owner wishes title insurance, a separate policy must be purchased. The new owner can, however, reduce the cost by purchasing the two policies simultaneously. Click Here to see title insurance rates.

Typically the real property interests insured are fee simple ownership or a mortgage. However, title insurance can be purchased to insure any interest in real property, including an easement, lease or life estate