What is Title?
Title is a legal term for a bundle of rights in a piece of property in which
a party may own either a legal interest or an equitable interest. The rights in
the bundle may be separated and held by different parties. It may also refer
to a formal document that serves as evidence of ownership. Conveyance of the
document may be required in order to transfer ownership in the property to another person.
Title is distinct from possession, a right that often accompanies ownership but is
not necessarily sufficient to prove it. In many cases, both possesion and title may be transferred
independently of each other.
What is Title Insurance?
Title insurance is indemnity insurance against financial loss from defects
in title to real property and from the invalidity or unenforceability of mortgage
leins. Title insurance is principally a product developed and sold in the United
States as a result of the comparative deficiency of the US land records laws.
It is meant to protect an owner's or lender's financial interest in real proerty against
loss to due to title defects, liens, or other matters. It will defend against
a lawsuit attacking the title as it is insured, or reimburse the insured for the
actual monetary loss incuurred, up to the dollar amount of insurance
provided by the policy.