Title insurance is a contract to indemnify against losses arising through defects in the real estate title.
When you buy a home or parcel of land, it is necessary to know whether the former owner is married, single, or divorced. You must know if the property taxes are paid, or if there are lawsuits, liens, encroachments, or judgements against the owner/property. Whenever you consider the purchase of real estate, you should be aware that there may be others, in addition to the owner that may have rights to that property. There may be a contractor, government agency, ex spouse, heirs, or others who have proper claims against the property. A deed is not proof that the seller actually is the owner. Most of the records searched are accessible to the public. However, a careful investigation by a competent individual/company can disclose all items required to properly insure that real estate.