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Real Estate and Title Insurance Glossary
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title insurance |
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- A policy which insures a property owner should a prior claim arise against the property after the purchase has been completed. This also covers a lender should a question of ownership arise.
- Insurance against loss resulting from defects of title to a specifically described parcel of real property. Defects may run to the fee (chain of title) or to encumbrance.
- A policy of indemnity issued by a title insurance underwriter or its agent that insures a buyer or lender against monetary loss or damage due to errors in the title as described in the policy and undeterminable facts that affect title such as fraud, forgery, unrecorded documents, unknown heirs, and many other factors.
- insurance that protects the lender against any claims that arise from arguments about ownership of the property; also available for homebuyers.
- A policy by an insurance company to protect against losses from defects in the title. An example of a defect would be a forged signature on a previous deed. Title insurance only covers events that have already happened by that are not discoverable before the policy is written.
- A comprehensive indemnity contract under which a title insurance company warrants to make good a loss arising through defects in title to real estate or any liens or encumbrances thereon. Unlike other types of insurance, which protect a policyholder against loss from some future occurrence (such as a fire or auto accident), title insurance in effect protects a policyholder against loss from some occurrence that has already happened, such as a forged deed somewhere in the chain of title.
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