This is a policy that protects the owner from a loss due to defects, liens or encumbrances that affect title to a property. A defect is a deficiency, irregularity, blemish on a title, which usually needs to be resolved before a transaction can close. A lien is a legal claim, such as a mortgage, on a property that must be paid when the property is sold. An encumbrance is some sort of restriction (like a lien or a loan) that puts a burden on the title to a property. Title insurance usually covers all these potential issues when you are buying or selling a property. Hope this helps! Â
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Posted on: Wed, 07/30/2008 - 04:32
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The Title Wizard 
This is a policy that protects the owner from a loss due to defects, liens or encumbrances that affect title to a property. A defect is a deficiency, irregularity, blemish on a title, which usually needs to be resolved before a transaction can close. A lien is a legal claim, such as a mortgage, on a property that must be paid when the property is sold. An encumbrance is some sort of restriction (like a lien or a loan) that puts a burden on the title to a property. Title insurance usually covers all these potential issues when you are buying or selling a property. Hope this helps! Â
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La Jolla, CA