What is it?
Title Insurance is an insurance policy issued to an owner or lender which assures the condition of the title to the home at the time of the purchase or loan. In other words, it is assurance of the ownership in the land, including its size and the status of other potential interests in the land such as liens or easements. The policy is issued to you and your lender for a one-time fee and will serve as protection to you for as long as you own your home (and sometimes longer).
Typical examples of the coverage provided by Title Insurance:
- An error in the land registry records or City records results in an unknown mortgage or work order against your property. Your title insurance company will pay out or discharge this unknown defect;
- Your neighbor claims that he owns 3' of the property you just purchased. Your title insurance company will resolve the issue through payment to you or your neighbor or may hire a Lawyer to defect against the neighbor’s claim (at the insurer’s expense).
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