What is title insurance?
Title insurance is insurance against loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens. Before you purchased your home, it may have gone through several ownership changes, and the land on which it stands may have went through many more. There may be a weak link at any point in that chain that could emerge to cause problems. For example, someone along the way may have forged a signature in transferring title. Or there may be unpaid real estate taxes or other liens. Title insurance covers the insured party for any claims and legal fees that arise from such problems.
