Title insurance
A one-time policy that covers losses from title problems missed by the search, such as forgery or unknown heirs. Lenders require a lender's policy; the owner's policy protects the buyer. Who pays varies by state and local custom.
Also called: owner's policy, lender's policy, owner's title policy
Related terms
The legal right to own and use a property. Title is not a single document; it is shown by the deed and public records, and must be clear for a sale to close smoothly.
A review of public records to confirm who owns a property and find liens, easements, judgments or other problems. Its results go into the title commitment before closing.
A company that searches title, issues title insurance and often handles closing and escrow. In attorney states, a lawyer may run the closing while the title company provides the policy.
Fees and charges paid at closing on top of the price, such as lender fees, title insurance, recording fees, taxes and prepaid items. Buyers often pay around 2% to 5% of the price; sellers pay their own set of costs.
Any claim, lien or error in the records that casts doubt on who owns a property. It usually must be cleared before the sale can close.