Title Insurance

Title insurance protects the insured against losses arising from defects in title existing at the policy date. An owner's policy protects the buyer; a lender's policy protects the mortgagee. Unlike other insurance, title insurance is a one-time premium paid at closing and covers only pre-policy defects.

Related Recording Acts & Title rules

• Recording Acts — Purpose and TypesRecording acts protect subsequent purchasers for value against prior unrecorded interests. The three types are: (1)…
• Bona Fide PurchaserTo qualify as a bona fide purchaser (BFP) protected by a recording act, the purchaser must: (1) pay valuable…
• Constructive Notice from the RecordA subsequent purchaser is charged with constructive notice of all instruments properly recorded in the chain of title.…
• Inquiry NoticeA purchaser has a duty to inquire into facts that would alert a reasonable person to the existence of a prior claim.…
• Chain of Title Problems — Shelter RuleUnder the shelter rule, a person who takes from a BFP acquires the same protection the BFP had, even if the taker…
• Estoppel by DeedIf a grantor conveys land they do not yet own, and subsequently acquires title, the after-acquired title automatically…
• Torrens SystemUnder the Torrens (land registration) system, a judicial proceeding establishes title, which is then registered with…
• Wild Deeds and the Chain of TitleA deed is outside the chain of title (a 'wild deed') if it is recorded before the grantor acquired record title. A…

Part of Real Property on Core Legal Rules — foundational MBE-tested principles with primary-source citations.