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 ?
Title insurance industry veterans Douglas Forsyth and TitleVest Agency, Inc.
7 billion home title insurance market according to the American Land Title Association.
and Shield International to provide title insurance and real estate-related products and services in Israel.
At issue are changes in the title insurance sector that are being pushed by the powerful California Association of Realtors.
WASHINGTON -- The American Land Title Association (ALTA) reported title insurance premiums written during the first quarter of 2010 increased 4.
Nobody ever wakes up one morning and thinks that they want to be a title insurance professional," said Anthony Chiellino, founder and president of Prestige Title, one of the largest title insurance agencies in the tri-state area.
900, "The Financial Services Modernization Act," settled on a provision affecting the sale of title insurance by national bank operating subsidiaries.
Effective December 31, 2009, the following companies have been merged into First American Title Insurance Company (FATICO) (Santa Ana, CA), the lead title insurance underwriter of The First American Corporation, Inc.
The Judicial Title Insurance Agency LLC has appointed Howard T.
s (LFG) title insurance underwriting companies from 'A' (Single-A) to 'A+' (Single-A-Plus).
has removed from under review with negative implications and downgraded the financial strength rating (FSR) to A- (Excellent) from A (Excellent) and issuer credit ratings (ICR) to "a-" from "a" of Fidelity National Financial Group (Fidelity) and its eight title insurance members.
The Judicial Title Insurance Agency LLC, recognized for decades as a dominant firm in the residential sector in the New York metro area, has established a division to focus on title insurance for commercial transactions, announces Richard Giliotti, president and chief operating officer.