Philip S. Dean

Nature of Title Insurance - What Policies Guarantee - What They Do Not Cover - Character of Agreement - Actual Protection - How Policies Are Voided - Importance of Covenant and Warranty

Title insurance deals solely with titles to real estate and interests in and liens upon real estate. Its purpose is to guarantee owners and other persons interested against loss arising from defects in the title to such properties, or from the un-marketability of such titles. This guarantee is in the form of a policy and is issued by a corporation which, in this State, must have a minimum capital of $150,000. The policy is issued after an examination of the title by experts in the employ of the company, and the person who is applying for the insurance is informed by an elaborate written report some days before he acquires the title, of the exact condition of the title as disclosed by the examination. The policy thereafter issued to him is substantially a contract by the title company that the title is in the condition shown by its report, and that if it is not, the title company will reimburse the assured for any loss, not exceeding the amount stated in the policy, arising from any discrepancy. The title policy contains four general agreements: