Title Insurance

Definition

• A type of insurance that protects the policyholder from problems in the title of property or from challenges to the ownership of property. Title insurance covers a number of risks including fraudulent attempts to take a title through forgery, encroachments on the policyholder's property, easements, zoning non-compliance, unpaid liens, or having someone other than the policyholder on the title.

Synonyms
title defect insurance

Related Terms and Acronyms

• Abstract of Title (ab) — Abbreviation,
  • A written history of all the transactions that bear on the title to a specific piece of land. An abstract of title covers the time from when the property was first sold to the present.
  ➥ AB is a common abbreviation for Abstract of Title when used in property listings and real estate classifieds.
• Chain of Title — Definition,
  • Legal records that trace ownership of a property from the most recent owner to the original owner.
• Cloud on Title — Definition,
  • A claim on title to property that could impair the ability to transfer ownership.
• Insurable Title — Definition,
  • A title that can be insured.
• Land Title — Definition,
  • The legal document conveying title to a property.
• Title — Definition,
  • Evidence of a person's right to possession ownership of a property.
• Title Binder — Definition,
  • Insurance that covers both the buyer and seller of a property until the property has sold.
• Title Defect — Definition,
  • A legal claim by others to property, or the right to make demands upon an owner.
• Title Report — Definition,
  • A report that reveals any competing claims, liens, or other problems relating to a property. A title report is required before title insurance will be issued. Also known as a "Preliminary Title Report" or "Prelim."
• Title Search — Definition,
  • A check of public records to make sure that the owner of real property has the right to transfer ownership. A title search is designed to spot gaps in the chain of title, liens, problems with the legal description of the property, judgements against the owner, and the like.