What is Title Insurance
Title Insurance is actually a process, with the insurance policy being the end product. This process starts with a comprehensive search of public records to determine if any liens or other encumbrances are attached to the title to the property. During the search, detailed information from potentially hundreds of sources is gathered and reviewed, including tax records, federal, state and local records, court judgments, deeds and an evaluation of whether the property charateristics are accurately reflected by the information on title. Not surprisingly, one in four title searches uncovers some problem that must be rectified prior to closing.
There are 4 primary categories that can cloud a title and result in significant risk for a prospective homebuyer. The title search meticulously seeks out and evaluates any known indication of any of these issues; however, even the most comprehensive search may not uncover every hidden risk on title to a property.
In my next blog we will cover the 4 categories that can cloud title.
Mary Summers-Title Expert
Lighthouse Title Company
Florida Home Title Insurance