Generally we know about title loan especially car title loans in which the loan amount is given based on the value of the car that is kept as the security. But title insurance is entirely different from that. The title insurance is a form of insurance which can be also said as form of indemnity that protects the holder from financial loss due to the damage of loss happened to property.
This kind of insurance is mostly taken by the people like lenders where the borrower’s purchases just covers only the protected property of lender. The most common title insurance will be the owner’s title insurance where the compensation is paid for the seller to protect the buyer’s equity in the property and in some cases it is kept as a separate option too.
How title insurance works
Mostly in this field, the title means as guarantee or security given over a property or product or land etc. This is why lenders accept only the clear title as it is the necessary condition in any kind of transactions especially in real estate. The major duty of companies like titlecompanyst Petersburg is to do a check and search about every title or liens of any kind of request which is kept against them before they can grant sanction on it.
What is title search?
An intense examination should be done from the public records to determine and confirm whether the property which is going to be used as title has legal ownership in name of title search and this can be used to find out whether there are any other claims are there on the property. The title can be considered as a dirty one if it falls under the violation codes of erroneous surveys and unresolved building code.
Generally title insurance helps in protecting both real estate owners and the lenders in a financial means if any sort of damage occurring from liens, encumbrances or defect in the title or actual ownership of the property. The title insurance protects the property from past occurrences while the general insurance will be protecting from the future incidents.