Title Insurance


DEFINITION of 'Title Insurance'

Insurance that covers the loss of an interest in a property due to legal defects and that is required if the property is under mortgage. Most title insurance is lender's title insurance, which is paid for by the borrower but protects only the lender.

Owner's title insurance is a separate policy; in some areas it is paid for by the seller to protect the buyer's equity in the property.

BREAKING DOWN 'Title Insurance'

While a lender's policy only protects the lender against loss, the fact that the policy was issued reflects that a title search has taken place, which can give some assurance to the buyer. However, title searches are not 100% infallible, hence the need for insurance.

  1. Chain Of Title

    The official record of ownership of a property or asset. The ...
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    A lawsuit filed to establish ownership of real estate when ownership ...
  3. Title

    The right to the ownership and possession of any item that may ...
  4. Recording Fee

    The fee charged by a government agency for registering or recording ...
  5. Closing Costs

    The expenses, over and above the price of the property that buyers ...
  6. Title Search

    An examination of public records to determine and confirm a property's ...
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