TITLE INSURANCE

First of all, the legal definition of “TITLE” is:

1. FOUNDATION of property ownership
2. EVIDENCE that one has right to possess land.

There are TWO kinds of Title Insurance Policies. They are paid just one time and at the close of escrow.

LENDER’S TITLE POLICY

1. Insures that Lender has a valid lien against the property
2. Insures that Lender has “1st position” … they will be paid first lien holder to be paid in case of default

OWNERS TITLE POLICY … Homeowners Policy

1. Insures Homeowner that there are no other liens against property
2. Insures Homeowner against loss due to “Defect in title”

• Fraud
• Forgery
• Mental incompetence
• Clerical errors
• Confusion due to similar names