WHAT IS TITLE INSURANCE
Title insurance is a contract of insurance by a title insurance company to indemnify the insured against loss suffered because of recorded defects in title, unmarketability, liens, easements, and encumbrances not shown in the policy. The policy is issued after thorough research of the public records by highly trained professionals. since the policy is a contract, insureds are protected pursuant to the policy without the necessity of showing negligence on the part of the insurance company.
WHY IS TITLE INSURANCE NEEDED
It reflects the condition of the record title and protects against loss by reason of forgers, missing heirs, errors in public records, deeds executed by those under legal disability, deeds executed and recorded but not validly delivered, and numerous other matters which may affect ownership.
CAN TITLE INSURANCE BE OBTAINED BEFORE A DEAL IS CLOSED
A person or entity can find this out by making application to a title insurance company or title insurance agent in the county where the property is located. A preliminary title report will be issued in preparation of issuing a policy. Such preliminary reports are issued only upon receipt of an order for title insurance for a specified amount of liability.
A POLICY OF TITLE INSURANCE WAS ISSUED INSURING MY TITLE WHEN I BOUGHT MY LAND. WHY SHOULD I HAVE IT RE-ISSUED IN MY BUYER'S NAME WHEN I AM SELLING
Only the insured named in the policy is protected if a claims is made. The purchaser wants, and is entitled to have, full information as to the condition of the title right up to the date of sale. Hundreds and possibly thousands of legal instruments have been recorded since you bought the land. How many of them affect your land? That is what the preliminary title report will show to the purchaser.
WHEN IS THE POLICY OF TITLE INSURANCE ISSUED
The title insurance policy is issued after the deed to the buyer has been delivered and recorded.
WHEN IS THE POLICY OF TITLE INSURANCE ISSUED IF I AM BUYING UNDER A CONTRACT OF SALE
Your policy of title insurance is usually issued after the contract of sale has been signed and recorded.
IF MY LENDER HAS A TITLE INSURANCE POLICY, DOES IT PROTECT THE LAND OWNER
No. The owner cannot make a claim for loss against the title company based on the lender's policy.