What is Title Insurance?

A title insurance policy insures that as the new owner, your title to the property is free and clear of any possible encumbrances, and that you have clear title from the seller. A title insurance policy insures that you will stand protected from loss or damage as a result of any title defects.

What is a Title Search?

A title search is a detailed examination of the public records concerning a property. These records include deeds, court records, and many other public documents. The purpose of the search is to verify the seller’s right to transfer ownership, and to discover any liens, open mortgages, judgments or unpaid taxes against the seller.

What are the types of Title Insurance?

There are two different types of policies – a loan policy and an owner’s policy.

• The loan policy protects the lender’s interest in the property in the amount of the outstanding balance of the loan.
• The owner’s policy protects the buyer’s interest in the amount of the purchase price of the property.

There is also GAP insurance. This is additional title insurance that may be called for in the Offer to Purchase. The GAP covers the period between the effective date on the title and the date the documents are recorded at the Register of Deeds.