Title Insurance insures a home buyer and a mortgage lender against loss resulting from title defects, whether these defects are known or unknown at the time of the sale or refinance. In the language of the title industry, the insurance coversboth "on record" and "off record" problems.
There are numerous instances where title to real estate has been found to be defective either based on substantive grounds or technical, legal procedural reasons (such as improper indexing, misfiling or failure to comply with local recording requirements).
Titlle insurance is designed to protect the lender - and the homeowner - against these risks.
