When a property is financed, bought, or sold, a record of that transaction is filed in public archives. Likewise, records of other events that may affect the ownership of a property, like liens or levies, are also archived.
When you buy title insurance for your property, a title company searches these records to find – and remedy, if possible – several types of ownership issues. First, the title company searches public records to determine the property’s ownership status. After this search, the underwriter will determine the insurability of the title.
For a one-time fee paid at closing, title insurance can protect your property rights for as long as you or your heirs own the property. This purchase protects you from:
Missing heirs who could claim the property belongs to him or her
Missed easements or rights of way that could limit your use of the property