Definition - What does Title Insurance mean?
Title insurance is insurance that a person can buy to protect against losses in the event that there is a technical or legal flaw in his or her property title, which could potentially result in the loss of the property. Such flaws could have to do with clerical errors, legal errors or other hazards relating to the title of a piece of property.
Justipedia explains Title Insurance
An example of a situation that could result in a property ownership dispute is if a lawyer who is creating contracts for the sale of a 50-acre plot of land misinterprets the laws of the state and accidentally draws up an illegitimate contract. This could result in the title being illigetimate as well. If the person who got the bad title had title insurance, then he or she would be protected financially. However, if not, then he or she could lose the title, as well as the money he or she paid for the property.
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