Title insurance protects lenders and/or home owners against loss of their interest (ownership) in the property in the case of a legal defect in the title.

Defects?

Although a thorough title search of the public records is performed prior to issuing the policy, hidden defects can be undetectable including:

• forged documents
• deeds by minors
• undisclosed heirs
• deeds of person apparently single but actually married
• federal estate and/or gift tax liens
• errors in tax records etc.

Legal Costs

The title policy is a guarantee of title as reported and assures the title company will:

• defend the title up to the value of the policy.
• bear the expense of the defense.
• pay any loses that occur through settlement or under court order.