reference
glossary.
25 terms
definition
Title insurance is a policy that protects property owners and lenders against financial loss due to defects in the property's title or ownership history. Unlike other insurance that covers future events, title insurance protects against past issues like liens, forgeries, or ownership disputes that may surface after purchase. Most lenders require title insurance, and buyers can purchase an owner's policy for additional protection.
examples
- —The title insurance policy protected the new homeowner when an old mechanic's lien was discovered six months after closing.
- —During the title search, the insurance company found and resolved a boundary dispute before the sale could proceed.
- —The lender required title insurance to protect their mortgage investment in case ownership issues arose later.