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A
policy of title insurance is a contract of indemnity between the insured and the
insuring company relating to the title to the land described in the policy,
protecting the insured against loss of damage by reason of defects, liens or
encumbrances of the insured title existing at the date of the policy and not
expressly excepted from its coverage.
The policy is issued after a complete search and examination of the
public records and shows the condition of the record title, including any money
obligations outstanding against the property, easements and other matters which
may affect the rights of ownership, possession and use of the property.
Title insurance protects the "record" title, insuring it
is good subject only to the exceptions expressly set out in the policy. lt also
insures against certain matters which do not appear of record, such as forgery,
identity of parties, incompetence of former owners, interest of missing heirs,
and status of individuals not having the "right" to sell property.
There are
different types of policies. Owners policies are issued to real estate owners.
Purchasers policies are issued to purchasers of real estate under contract.
Mortgage policies are issued to mortgage companies. In addition there are
several other special forms of policies. There is a type of policy to meet the
requirements of almost any form of real estate transaction. |
