Title Insurance Policy

An owner's title insurance policy protects the owner against title defects in the property. A mortgage title policy protects the holder of the mortgage on the property. Separate policies are required to protect both interests.

After the buyer's deed is delivered and recorded, the owner's policy of title insurance is issued. Typically, a purchaser's policy is issued after both parties have executed the contract and the title agent has recorded the deeds.

The coverage of your policy applies only to matters that appeared of record up to the date of issuance of your policy. Some documents may have been recorded since that time; some of these may affect the title to your land. There may be accrued and unpaid taxes and assessments along with possible court actions affecting your title. The purchaser is entitled to have full information and protection as to the condition of the title right up to the date of his/her purchase. In addition, there may be matters of record which would prevent either the seller or buyer from selling, buying, or mortgaging land until such matters have been cleared. These items include such things as federal tax liens, judgments, divorce actions and other conditions, which the title search may disclose.