“Title” is the foundation of ownership property. Solution Title Agency provides you a legal right to possess that property and to use it within the restrictions imposed by authorities or limitations on its use, superimposed on the basic right to possession by previous owners.
Title insurance is an insurance policy issued by an Insurance Underwriter, guaranteeing a buyer’s ownership and peaceful enjoyment against claims, liens or judgments associated with a property after the purchase is completed. Such insurance protects against losses arising from events occurring prior to the date of the policy. Unlike Real Property or Casualty Insurance where coverage starts on the day a policy is issued, title insurance being Indemnity Insurance causes coverage to stop on the day the policy is issued. Its coverage extends backward in time and guarantees that events prior to your ownership do not result in losses to you.
Anything in the entire ownership of a piece of real estate which may impede the owner’s right to the “peaceful enjoyment” of the property or which may cause the owner to lose any portion of the property.
There are some title defects that cannot be uncovered with even the most thorough search. For example, a search will not uncover that a valid deed was indexed improperly in the land records. Title insurance will protect you from these types of defects.
In general, there are two different types of Title Insurance policies available. The Owner’s Title Insurance Policy which offers protection only to the owner against defects in their title to real estate. The Lender’s Title Insurance Policy is meant to insure and protect only the lenders’ loans against defects and losses until the mortgage is paid off. Consequently, a lender’s policy does not provide coverage to the owner in the absence of the owner’s policy. A new owner’s policy need not be necessary when refinancing an existing property, however the lender will require the purchase of a new lender policy.
No, the lender’s policy insures only the lenders interest in your property. A lender’s policy of title insurance protects the lender that financed your property. It insures them against a loss caused by defects in the owner’s title. You would lose your equity if you did not have an Owner’s Title Insurance policy.