Page 3 - Title Insurance Explained With Closing Tips For Buyers and Sellers

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INTRODUCTION

This booklet aims to shed light on the intricacies of title premium that provides coverage for as long as the policyholder
insurance, a form of insurance that protects against financial or their heirs have an interest in the property. Other types
loss from covered defects in the title to real property. Whether of insurance will generally assess risk based on statistical
you’re a first-time homebuyer, a seasoned investor, or simply predictions, while title insurance focuses on risk elimination,
curious about the ins and outs of real estate transactions, rooting out potential title issues during the title search
understanding title insurance can help to provide invaluable process before a title policy is issued. This unique approach
peace of mind. Title insurance safeguards your property rights to risk management sets title insurance apart from other
and protects your investment from unforeseen legal claims insurance products, underscoring its critical role in real estate
covered by the title policy. So, let’s embark on this journey to transactions.
unravel the complexities of title insurance, ensuring you’re
well-equipped to navigate your next real estate venture with
confidence.
Unlike other insurance policies, such as auto, home, or life
insurance, title insurance is distinctive in its structure and
function. While other insurance policies protect policyholders
against potential future events and charge a recurring
premium, title insurance protects against events that occurred
to the title of the real property in the past. It is a one-time