Title Insurance


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Title Insurance

A contractual arrangement entered into to indemnify loss or damage resulting from defects or problems relating to the ownership of real property, or from the enforcement of liens that exist against it.

Title insurance is ordinarily taken out by a purchaser of the property, or by an individual lending money on the mortgage, in an amount equivalent to the purchase price of the property. To be entitled to coverage, the purchaser typically pays one lump sum premium, usually at the day of the closing. Title insurance companies are specially organized for this purpose. They retain complete sets of abstracts of title or duplicates of the record, hire expert title examiners, and prepare all types of conveyances and transfers. Following a title search, such companies furnish a certificate of title, indicating the findings of the title examiner with respect to the state of the title to the property involved. Title insurance companies are liable only for a lack of care, skill, or diligence on the part of their examiner when a title certificate is issued up to the face amount of the policy. An insurance of title, however, warrants the validity of the title in any and all events.

Cross-references

Recording of Land Titles; Registration of Land Titles.

title insurance

n. a policy issued by an insurance company guaranteeing that the title to a parcel of real property is clear and properly in the name of the title owner, and that the owner has the right to deed the property (convey or sell) to another. Should a problem later arise with the title (such as an inaccurate description), the insurance company will pay the damages to the new title holder or secured lender, or take steps to correct the problem. (See: title, title search, chain of title)

References in periodicals archive ?
California Members Title Insurance Company, an independent company owned by California Credit Union, has received its certification from the California Department of Insurance.
As part of New York State's budget process and title insurance industry reforms, Bill S6357D Part V / A8557-D Part V, which subjects title insurance agents to licensure and regulation by DFS, was passed by the New York State Legislature and signed into law on April 1, 2014.
The ratings reflect First American Title Insurance Group s significant market presence within the title industry as well as its significantly improved underwriting leverage measures and risk-adjusted capitalization.
Excalibur is a policy-issuing agent of Fidelity National Title Insurance Company, First American Title Insurance Company of New York, Old Republic Title Insurance Company and Stewart Title Insurance Company, with service capabilities throughout the United States.
Though the inquiries continue to morph as they expand to look at more areas of the industry, essentially the probes have grown out of concerns raised by regulators in California, Colorado, Washington and Florida--and the federal Department of Housing and Urban Development--that title companies were entering "phony" reinsurance treaties with captive reinsurers owned by builders and real estate firms as a means to circumvent state and federal prohibitions against the payment of referral fees on title insurance business.
With StreamLoan Title, lenders can now accelerate the loan closing process while also ensuring true title insurance protection," said Gregory Oxley, TransUnion Settlement Solutions' group vice president of title insurance.
While there are scores of title insurance agencies in the state, four carriers claim 70 percent of the state's title insurance market: Chicago Title Insurance Co.
Title insurance is intended to deal with those problems as well as the costs related to defending an action brought by the city in the future.
Title insurance covers consumers for any costs that may arise if there is a problem with the title to property they have bought.
The criteria report, "BCAR for Title Insurance Companies" contains updated exhibits that demonstrate how the BCAR model is used for title insurance companies.
Effective regulation of the title insurance industry is vital to the public interest since most people who buy, sell or refinance their homes or other real estate will need to purchase title insurance," Seward said.
Unless it's a family business, everyone I know just seems to fall into title insurance .