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Real Estate Definition - title insurance

title insurance - an insurance or indemnity contract purchased from a title insurance company to guarantee that the policyholder will be protected from loss due to challenges to the title or estate acquired. The title company warrants that any losses caused by defects in title unknown to the insurer or the parties at the time of the issuance of the policy will be indemnified In general, title insurance will protect against unknown problems in the past, such as forged deeds, mental incompetence of a person in the chain of title, undisclosed heirs, etc. There are several forms of title insurance. Not all policies protect against all risks. See also American Land Title Association.



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