Title refers to the rights of ownership in a property. A title search and examination review the property record to identify issues and requirements before closing.
Title insurance may protect against covered losses arising from certain defects in title. Coverage depends on the policy, its terms, exclusions, and exceptions.
Two different interests
An owner’s policy protects the insured owner’s interest. A lender’s policy protects the insured lender’s interest. They serve different purposes.
Questions worth asking
- What does the commitment require before closing?
- What exceptions will appear in my policy?
- Which policy or endorsements apply to my transaction?
More on title insurance from the Texas Department of Insurance.