Indemnity insurance is protection against financial loss arising from problems connected to the real estate title of a property. By purchasing aÂ title insuranceÂ policy, the client is gaining important knowledge that recorded instruments have been searched and scrutinized so that title insurance covering the property can be issued. This awareness will give all parties involved in a real estate transaction peace of mind. Another benefit to title insurance is for defending against claims that are not revealed in the title search and are made after the property is purchased.Â
Having clear real estate title to the land means that there are no claims against it. For example, a person not involved in the transaction might claim they have a deed or lease giving them ownership or the right to possess the property, another person might claim they hold an easement giving them a right to access across the property, and someone else might have a lien on the property securing it as a repayment of a debt. All of these issues could make the property unmarketable.
To establish a clearÂ real estate title, a title insurance company will do a search that begins with the current individual holding the real estate title and move backwards until the original U.S. patent that established the deed is located. Not only does this create a chain-of-title on the property, but it also discloses other issues such as grants of easement, and liens made against the property.
To read the complete article, CLICK HERE