Title
Insurance Explained
A policy of title insurance is a contract of indemnity
between the insured and the insuring company relating
to the title to the land described in the policy, protecting
the insured against loss of damage by reason of defects,
liens or encumbrances of the insured title existing
at the date of the policy and not expressly excepted
from its coverage.
The
policy is issued after a complete search and examination
of the public records and shows the condition of the
record title, including any money obligations outstanding
against the property, easements and other matters which
may affect the rights of ownership, possession and use
of the property.
Title
insurance protects the "record" title, insuring it is
good subject only to the exceptions expressly set out
in the policy. lt also insures against certain matters
which do not appear of record, such as forgery, identity
of parties, incompetence of former owners, interest
of missing heirs, and status of individuals not having
the "right" to sell property.
There
are different types of policies. Owners policies are
issued to real estate owners. Purchasers policies are
issued to purchasers of real estate under contract.
Mortgage policies are issued to mortgage companies.
In addition there are several other special forms of
policies. There is a type of policy to meet the requirements
of almost any form of real estate transaction.
