| 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. |
