Title insurance is a unique product in that it is insurance which covers liens, problems or errors which occurred in the past. Title insurance protects buyers, sellers and lenders involved in a real estate transaction. Loss or damage can occur from liens, encumbrances, or defects in the chain of title. Title insurance protects against claims because of any negative history attaching to the real estate insured.
Before insuring a title, McKesson Title will research the property and the titleholders through the public records. Titleholder interest, current tax information, legal descriptions, liens, judgments and other pertinent information is disclosed on the title commitment. As per its name, the title commitment is a commitment by the title agent and underwriter to insure the proposed real estate transaction, as long as all of the requirements of the commitment have been met prior to closing. Often, the most intensive work of the title agency is in assisting the clients with lien resolution.
Another unique aspect of title insurance is that insured parties do not pay for continued coverage every year. It is a one-time cost, and coverage lasts as long as the current owner holds title (for an Owner’s Policy), or as long as the mortgage loan is active (for a Loan Policy).