What is Title Insurance?
Obtaining title insurance is a typical part of the process when purchasing real estate. However, many people are unaware of what it truly means to have title insurance. Knowing precisely what a title policy insures against, as well as being familiar with some of the vocabulary that is used during the closing process, will give you peace of mind and help you understand the importance of title insurance.
- Title Insurance:
An agreement to protect the insured against loss arising from a covered defect in title to a particular piece of real estate. This is typically issued to the buyer to protect their property rights in the form of an Owner’s Policy, and to the lender to protect its lien rights in the form of a Mortgagee’s/Loan Policy.
- Owner’s Policy:
A policy of title insurance, which insures a named owner against loss arising from defects, liens and encumbrances (not excepted to in the policy). The company also agrees to defend said covered claims made against the title to the parcel of real estate described on the Owner’s Policy.
- Mortgagee’s/Loan Policy:
A policy of title insurance which insures the validity, enforceability and priority of a lender’s lien; this policy provides protection for the lender.
A hold, claim or charge allowed a creditor upon the land of a debtor; i.e. judgment liens, mortgage liens, etc.
The process of executing legally binding documents (i.e. deeds, mortgages, etc.) associated with the purchase of real estate and borrowing money to assist in the purchase.
A person who, by a written instrument, transfers to another an interest in land.
A person who acquires an interest in land by deed, grant or other written instrument.
- Title Plant:
Additional services offered by Standard Abstract include, but are not limited to:
If you have any questions regarding services not listed above, please feel free to contact us for more information.
All Title examination and research is done by means of our in-house title plant, which eliminates the need for any outside sources when it comes to researching property within Pulaski County. Our title plant (Real Estate and Court records from US Patent to date) houses more than 13,000,000 images and increases daily.