what does title ins do both for buyer and seller
1 Answer from Attorneys
Title insurance is the only thing which actually proves legal ownership of property these days. If it turns out to have been sold by an imposter, without authority, or if unknown liens come up (which should have been discovered in the title check), the insurer reimburses the owner for the amount of the policy. Due to an ever increasing list of hidden liens (child support, delinquent taxes, judgments, etc.) which are difficult to discover, as well as increasing levels of fraud, title policies are more important than ever, provided that they cover the same property which you are buying (and the only way to determine that is with a survey). Erroneous legal descriptions which would actually transfer the neighbor's house are surprisingly common because so few people get surveys these days, and surveys are therefore the second most important evidence of ownership. Often times, without title insurance, no subsequent buyer will ever be able to get bank financing in the future, so these policies are absolutely indispensable.
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