WHAT IS TITLE INSURANCE?
Title insurance is a contract to indemnify against losses arising through defects in the title to real estate.
WHY TITLE INSURANCE?
When you purchase real estate, you should be aware that there may be others who could have rights in the property you are acquiring. A deed is not proof that the seller actually is the owner, and it does not contain the information regarding the rights others might have.
WHAT ARE THE TYPES OF POLICIES?
There are two types of polices, a lender policy and an owner policy. A bank or mortgage company will get a lender policy and a purchaser will get an owners policy to protect against the loss againts title defects.
WHAT IS THE DIFFERENCE BETWEEN A TITLE AND ABSTRACT COMPANY?
A title insurance company is licensed and must maintain reserves to cover possible claims.
An abstract company or title agency is authorized by on or more title insurance companies to issue policies under their name.