Real Estate Terms Glossary
What is Title Insurance?
We can define title insurance as a policy that covers various third-party claims or liens on a property that do not usually show up in the initial title search, arising after a real estate closing. Title insurance is essential as it protects real estate lenders and owners against any property damage or loss they might experience due to liens or defects in the property title.
Did you know that erroneous surveys are an example of blemishes that may make the property title "dirty”?
Examples of Title Insurance
- Example 1: Lender's title insurance
- Example 2: Owner’s title insurance
Here’s Investopedia’s definition of Title Insurance .