Title Insurance is an indemnity contract between an insured owner or lender and the title insurance company named on the title policy. The title policy protects real estate buyers and/or lenders from loss suffered as a result of various title defects listed on the title policy. Some examples of title defects include outstanding and unpaid property taxes by the previous owner, fraud or forgery in a deed, unknown heirs or spousal issues.
Should a claim be made against the title, defending the claim or curing the defect could potentially cost you thousands of dollars in attorney’s fees and costs. Additionally, in some extreme cases, you could lose your property. A title insurance policy covers the cost of a legal defense, as well as any amount of a covered loss up to the limits of the policy, which is ordinarily the purchase price of the property and in some cases up to 150 percent of that amount.
For more information about title insurance, contact us today at 410.992.1070.