Title Insurance Policy

A title insurance policy is a contract between the insured person and the insurance company.

This kind of insurance relates to the title of the land or property described in the policy. A title insurance policy protects the insured against loss of damage by reason of unknown defects, previous undiscovered liens, or encumbrances on that might have existed on the property before purchase, forgeries or any fraudulent practices concerning the property.

How do you get a Title Insurance Policy?

The insurance company issuing the title insurance policy will first do a complete search and examination of all records pertaining to the property. These include money obligations outstanding against the property, easements or other conditions that pertain to rights of ownership.

Also, possession and use of the property are covered. Once it has been established that the buyer has clear title to the property, and then the title insurance policy can be drafted by the insurance company and signed by the buyer.