Wednesday, February 23, 2011
What is Title Insurance?
Today's guest blog was submitted by First American Title representative Julie Satko.
Title Insurance… What is it?
Title is a bundle of rights in real property. Protecting purchasers and lenders against loss is accomplished by the issuance of a title insurance policy. Usually, during a purchase transaction the lender requests a policy (commonly referred to as the Lender’s Policy)while the buyers receive their own policy (commonly referred to as an Owner’s Policy).
In short, the policy states that if the status of the title to a parcel or real property is other than as represented, and if the insured (either the owner or the lender) suffers a loss as a result of a title defect, the insurer will reimburse the insured for that loss and any related legal expenses, up to the face amount of the policy subject to exceptions and exclusions contained in the policy.
Who is covered?
Typically there are two (2) policies issued. The Lender’s Policy insures the lender for the amount of the loan. The Owner’s Policy insures the purchaser for the purchase