What is title insurance?

Title insurance insures the state of title on the property prior to the Buyer’s purchase of the property – It is insurance that the property the Buyer is about to buy does not contain any restrictions, encumbrances, liens or judgments that would affect the Buyer’s ability to live at and enjoy the property. Just like any kind of insurance, title companies routinely raise exceptions on the policy that are not covered under the insurance. A good real estate attorney will review the title commitment closely prior to the closing on the transaction to ensure that the title is clean and that there are no unwanted exceptions raised on the policy that would affect the Buyer’s ability to live at and enjoy the property.