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Insurance
Title Insurance
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Insurance
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A policy of Title Insurance is a contract of indemnity between the
insured and the insuring company relating to the title to the land
described in the policy, protecting the insured against loss of
damage by reason of defects, liens or encumbrances of the insured
title existing at the date of the Policy and not expressly excepted
from its coverage .
The Policy is issued after a complete search and examination of
the public records and shows the condition of the record title,
including any money obligations outstanding against the property,
easements and other matters which may affect the rights of
ownership, possession and use of the property.
Title Insurance protects the "record" title, insuring
it is good subject only to the exceptions expressly set out in the
Policy. lt also insures against certain matters which do not appear
of record, such as forgery, identity of parties, incompetence of
former owners, interest of missing heirs, and status of individuals
not having the "right" to sell property.
There are different types of policies. Owners Policies are issued
to real estate owners. Purchasers Policies are issued to purchasers
of real estate under contract. Mortgage Policies are issued to
mortgage companies. In addition there are several other special
forms of policies. There is a type of policy to meet the
requirements of almost any form of real estate transaction.
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