What Is Title Insurance?
Title insurance protects a property owner against defects or encumbrances in the chain of title to the property that are not disclosed by the public records. You, and your lender, receive assurance through an insurance policy that you own your property subject only to easements and other matters disclosed in the land records and set forth in your policy. Your lender receives the assurance that the deed of trust securing your lender’s loan to you is a valid first deed of trust on the property, not subject to other liens, judgments or encumbrances, including unpaid real estate taxes, unpaid judgments of prior owners, federal or state tax liens against prior owners, and the like. In addition, with properly underwritten and structured coverage against mechanics’ liens, a lender making a loan for new construction or renovation will know that future advances made by the lender during the course of construction will retain the first lien priority status required by the lender.
Title Partners final product, the title insurance policy, provides security for the financial protection of real estate ownership. After a thorough examination of public records that disclose past and current information regarding ownership of property, Title Partners will issue a title insurance policy on behalf of the interested party (owner, mortgagee, lessee, etc.). Unlike hazard and automobile insurance, title insurance insures against the adverse claims arising from the past. The title policies specify in whom the legal estate is vested and indemnify the insured party against any loss they may sustain as a result of past title defects so that the real estate investment is secure.