WHAT IS THE DIFFERENCE BETWEEN TITLE INSURANCE AND A TITLE OPINION?
Title insurance refers to an insurance policy that is purchased from a title insurance company. Title companies will review the status of title to a piece of property and issue a “commitment” for issuing you a policy of title insurance. This commitment will give you the terms on which the title insurance company will issue insurance coverage to you. The commitment will also list exceptions and specific exclusions to their proposed insurance coverage. The exceptions raise issues that you and your attorney should review to determine if they can and should be deleted from the final title insurance policy (such as mechanics’ liens or mortgages placed on the property by your seller). As the names suggest, a “lender’s policy of title insurance” is issued for and protects a lender and an owner’s policy title insurance is issued for and protects property owners. A title opinion is a memorandum issued by a lawyer after he or she reviews the Abstract of Title (or the Registered Property Abstract
