Title Insurance indemnifies the buyer of a property in the event of loss arising out of legal risks relating to owning and operating real estate. Covered Risks may include:
Title Insurance can indemnify a mortgage lender to a property in the event the owner defaults on the mortgage loan, and upon seeking to enforce its mortgage, the lender discovers that the mortgage is defective or that the property value is reduced as a result of a Covered Risk.
Title insurance can cover both unknown risks, which were not identified in the buyer’s legal due diligence, as well as known risks, which had been identified as “red flags” in the legal due diligence.