What is the Title? In real estate, title refers to ownership of the property, meaning that you have the rights to use that land. How is title insurance beneficial? Title insurance offers reimbursement if disputes arise over property ownership. This protects your investment in the event of lawsuits or liens against a property. What is a lien on a land? A lien is a claim, or legal right, one party has against another's property. Liens can come in many forms, including mechanic’s liens, tax liens and judgment liens.
In general, the Title Company will perform a Title Search to make sure your Title is Free and Clear and will provide Title Insurance for your future property. Title will be insured only in case if the Title is free and clear.
Title insurance protects your investment against a financial loss caused by undiscovered defects in the documents or history of a property. To do this, title insurance companies carefully search public records and examine documents to help ensure that no one else has rights to your property, as well as identify any liens or encumbrances.
At the end of the purchase transaction you will receive a Deed for the property with your name as the owner in it. A deed is a legal document that transfers the ownership from one owner to another (person or legal instance). There are many types of deeds, please inquire the property seller or Title Company / Title Attorney to understand what type of deed you will get at the end and what it means. Read more about Deed Easements and Restrictions here.
