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policy of title insurance is a contract of indemnity between the
insured and the insuring company relating to the title to the land
described in the policy, protecting the insured against loss of damage
by reason of defects, liens or encumbrances of the insured title
existing at the date of the policy and not expressly excepted from its
coverage.
The policy is
issued after a complete search and examination of the public records
and shows the condition of the record title, including any money
obligations outstanding against the property, easements and other
matters which may affect the rights of ownership, possession and use of
the property. Title
insurance protects the "record" title, insuring it is good subject only
to the exceptions expressly set out in the policy. lt also insures
against certain matters which do not appear of record, such as forgery,
identity of parties, incompetence of former owners, interest of missing
heirs, and status of individuals not having the "right" to sell
property. There
are different types of policies. Owners policies are issued to real
estate owners. Purchasers policies are issued to purchasers of real
estate under contract. Mortgage policies are issued to mortgage
companies. In addition there are several other special forms of
policies. There is a type of policy to meet the requirements of almost
any form of real estate transaction.
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