Title insurance is a kind of indemnity insurance that insures against financial loss resulting from liens, encumbrances or defects in the title to the property and from the invalidity or unenforceability of mortgage loans.
Two kinds of title insurance policies exist: Lender’s and Owner’s policies. An Owner’s policy insures the home buyer/new owner. A Lender’s policy insures the priority of the lender’s security interest (mortgage).
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