[media]http://www.dora.state.co.us/Insurance/consumer/2008%20docs/consTitleIns031808.pdf[/media]
What is Title Insurance?
When a house, building or other property is bought and sold,
all the parties involved want to be sure the “title” or transfer of
ownership is clear. Title insurance protects the owner and the lender
against loss arising from problems connected to the title to the property.
Over the years, a home -- and the land it stands on -- may go through
several ownership changes. The “chain of title” describes the history of
ownership, with each person or entity listed who owned the land and/or
building at some point in time.
However, there can be unexpected problems in that chain that could
emerge to cause trouble. For example, there may be unpaid real estate
taxes or other liens. When title was transferred, someone may have
forged a signature, or written a property description improperly.
Title insurance covers the insured party for any claims and legal fees that
arise out of such problems.
