Title Insurance is a form of indemnity insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens. Title insurance is principally a product developed and sold in the United States as a result of an alleged comparative deficiency of the U.S. land records laws. It is meant to protect an owner's or a lender's financial interest in real property against loss due to title defects, liens or other matters. It will defend against a lawsuit attacking the title as it is insured, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy. The first title insurance company, the Law Property Assurance and Trust Society, was formed in Pennsylvania in 1853. The vast majority of title insurance policies are written on land within the United States.
Typically the real property interests insured are fee simple ownership or a mortgage. However, title insurance can be purchased to insure any interest in real property, including an easement, lease or life estate.
There are two types of policies - owner and lender. Just as lenders require fire insurance and other types of insurance coverage to protect their investment, nearly all institutional lenders also require title insurance to protect their interest in the collateral of loans secured by real estate. Some mortgage lenders, especially non-institutional lenders, may not require title insurance. Buyers purchasing properties for cash or with a mortgage lender often want title insurance as well. A loan policy provides no coverage or benefit for the buyer/owner and so the decision to purchase an owner policy is independent of the lender's decision to require a loan policy.
Title insurance is available in many other countries, such as Canada, Australia, the United Kingdom, Mexico, New Zealand, Japan, China, Korea and throughout Europe. However, while a substantial number of properties located in these countries are insured by U.S. title insurers, they do not constitute a significant share of the real estate transactions in those countries. They also do not constitute a large share of U.S. title insurers' revenues. In many cases these are properties to be used for commercial purposes by U.S. companies doing business abroad, or properties financed by U.S lenders. The U.S. companies involved buy title insurance to obtain the security of a U.S. insurer backing up the evidence of title that they receive from the other country's land registration system, and payment of legal defense costs if the title is challenged.
Read more about Title Insurance: History, Reason For Existence, Types of Policies, Land Title Associations and Standardized Policies, Comparison With Other Forms of Insurance, Homeowner's Right To Choose A Title Insurance Company, Affiliated Business Arrangements, Industry Profitability, Relative Market Share Among U.S. Title Insurers
Other articles related to "title insurance, insurance, title":
... The Real Estate Title Insurance Company of Philadelphia was the world's first title insurance company ...
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... HomeClosing101.org is a consumer-based web site, created by ALTA and several leaders in the Title Industry ... The purpose of homeClosing101 is to educate prospective homebuyers about Title Insurance specifically Why you need title insurance ... How to shop for title insurance Explaining the Closing Process Giving explanation to the Closing Costs Real Estate Glossary ...
... Riverbend Commercial Title Agency is a wholly owned subsidiary of Keating Muething Klekamp PLL ... is an authorized agent of 5 nationally renowned underwriters, including Chicago Title Insurance Company, Commonwealth Land Title Insurance Co ... First American Title Insurance Co ...
... national families of title insurers, i.e. 05.48% - - Regional Companies 07.01% - - TOTAL 100.00% Source American Land Title Assn As of January 2009, Fidelity National Financial now holds the highest market share, due to its acquisition of ...
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