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, an important protection for lenders and homebuyers, looks backward.
Title insurance is designed to protect your property from potential issues arising from the title of the property.
Make a good faith effort to obtain and be open for title insurance business from all sources, not just business from affiliated persons, including actively competing in the marketplace.
First American Financial Corporation is a leading global provider of title insurance, settlement services and risk solutions for real estate transactions.
FNF said it plans to invest in and grow the Stewart brand on a national basis as part of a long-time strategy of operating multiple title insurance brands under the FNF umbrella.
"I am pleased to approve a license for States Title to not only sell title insurance in California but also to be domiciled here," Jones said in a statement.
She testified that a title insurance premium before ancillary fees in downstate counties can be as much as 40 percent more than in Connecticut and 25 percent more than in New Jersey and Massachusetts.
Her experience with other national underwriters includes 14 years with the Fidelity National Title Companies and 10 years at First American Title Insurance Company, New York Division.
Only one company, ARIS Title Insurance Company, offers art-title protection insurance (ATPI).
Historically, New York State has not required the licensing of title insurance agents.
Would allowing title insurance companies to audit attorney trust accounts--including those transactions the companies are not insuring--be a breach of confidentiality for clients with funds in those accounts or an extra protection?
The Arkansas Insurance Department has yanked the license of a Greenwood title insurance agent and her agency for allegedly using another agent's name without permission.