Title insurance
National Real Estate Exam Glossary
A policy that protects against loss from defects in title existing as of the policy date but not excepted in the policy—forged deeds, undisclosed heirs, recording errors. Unlike other insurance, it is paid for with a single premium and looks backward at the title's history rather than forward at future events. An owner's policy protects the owner up to the purchase price; a lender's policy protects the lender up to the loan balance.
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