Title insurance is a type of insurance that protects against financial loss from defects in the title to a property. A title search is an essential part of the process, which involves determining the rights and ownership of a property from public records. It ensures that the person selling the property has the legal right to do so and that the buyer is obtaining all the rights they are paying for.

In most real estate transactions, a title insurance policy is purchased to assure the buyer that they have purchased a valid title. The title insurance company will conduct a search to determine the insurability of the title, which includes examining the chain of title, tax search, and judgment and name search.

A chain of title is a history of ownership of a property, including who bought and sold it, and when. A tax search is conducted to determine the present status of taxes against the property, including any unpaid taxes or special assessments. A judgment and name search is important to determine if there are any unsatisfied judgments against the seller or previous owners, which can affect the title of the property.

Once these searches have been completed, the title insurance company issues a commitment to insure, stating the conditions under which they will insure the title. The buyer, seller, and mortgage lender can then proceed with the closing of the transaction after any defects in the title have been cleared.

It’s important to note that the lender’s title insurance policy does not protect the buyer. Therefore, it’s essential for the buyer to obtain their own policy, often issued simultaneously with the lender’s policy. Exquisite Law Firm can assist clients with their title insurance by providing legal advice and representation in the event of a dispute or claim. Our attorneys can review title documents, conduct a title search, and assist with the purchase or sale of a property.