What is a title? What is a title insurance policy?

The titleThe right to, and the ownership of, property. A title or deed is sometimes used as proof of ownership of land…. of a property is evidence the owner is in lawful possession of that property. It is a legal document filed in the county of the property.

Title insurance protects against loss from encumbrances in the title of a property.  Generally, called a “defect”. A defect is an all-encompassing term used to say there is something wrong with the title. A defect may interfere with the transfer and issuance of title insuranceInsurance that protects lenders and homeowners against legal problems with the title….. A defect can be a claim of ownership, fraud, forgery, lienA claim or charge on property for payment of a debt. With a mortgage, the lender has the right to take the title to your property if you don’t make the mortgage payments…., encroachmentThe intrusion onto another’s property without right or permission…., or easementA right to the use of, or access to, land owned by another.. It is any document recorded establishing a claim. The title policy ensures a new owner against all claims made before the new ownership. A lender’s policy ensures the lender’s securityThe property that will be given or pledged as collateral for a loan…. interestThe cost you pay to borrow money. It is the payment you make to a lender for the money it has loaned to you. Interest is usually expressed as a percentage of the amount borrowed…..