Title insurance is a form of indemnity insurance that protects the holder from financial loss sustained from defects in a title to a property. The most common type of title insurance is lender’s title insurance, in which the borrower purchases coverage only to protect the lender. Traditional insurance policies protect insureds against future losses. For example, a car insurance policy will protect the driver from future accidents, and a health insurance policy will protect an insured from future health problems. However, title insurance is different because it protects insureds against claims for past occurrences.

How Does a Title Search Help?

A title search will reveal many potential problems. A title search is done by examining public records to look up the history of property ownership. The title search shows not only limitations on the use of the property and rights others may have in the property, but also liens or monetary obligations that are outstanding against the property.

Who does title insurance protect?

Title insurance will require an extensive title search of the property. This search will minimize the potential liability to the property owners by discovering any foreseeable title issues. But once a property owner purchases and takes possession of a property, title insurance will defend against any litigation that challenges the validity and legality of the new property owner. Two different types of title insurance exist.

  1. A real estate owner can choose to purchase title insurance and lenders can elect to do so as well. Lenders will require title insurance by mortgagors in order to secure their security interest in the property.
  2. A property owner will purchase title insurance to protect their investment in their property.

Common types of title insurance:

  • Errors in the public record,
  • Undiscovered Liens,
  • Omitted Heirs,
  • Fraud.

What specific claims do title insurance cover?

A title examiner will assess the title by analyzing the chain of ownership of the house. They will insure that the property passed either by sale, through will, or maybe even in a gift to the correct and intended person. Besides this, a title check will insure there are no current legal claims against the property.


An Owner’s Title Insurance Policy is your best protection against potential defects that can remain hidden despite the most thorough search of public records. A Lender’s Title Insurance Policy also exists to protect your mortgage lender’s interest. For a one-time premium, First American agrees to reimburse you for covered losses suffered due to undetected defects that existed prior to the issue date of your First American policy, up to the amount of the policy. Unless specifically excluded, your First American Title Insurance Policy also provides for legal defense costs.

Advantages of hiring an Attorney for Title Insurance:

Title insurance is crucial for a home buyer because it protects you and your lender from the possibility that your seller doesn’t or previous sellers didn’t have free and clear ownership of the house and property and, therefore, can’t rightfully transfer full ownership to you. Having clear title is crucial to any real estate transaction. Yet, as the buyer, it can be hard to grasp what exactly title is and how it affects the sale. 

‘Title Insurance’ refers to the legal ownership over and the right to deal with, use, and dispose property. When a property is purchased, the home buyer acquires its title/ownership. However, there are several cases where discrepancies with regard to title transfers have been recorded. In order to prevent a buyer from such hazards, title insurance acts like a confidence booster and a secure safety system. There are innumerable benefits that a property purchaser draws by opting for title insurance, e.g.,:

  • Meets the Statutory Compliance of RERA: Real Estate (Regulation and Development) Act, 2016 (RERA), makes it of utmost importance for developers, constructors, landowners and homeowners to purchase title insurance. The insurance adds a protective layer to the real estate business, and works towards easing the process of real estate financing and credit availability. If a homeowner possesses the insurance, it increases the value of their property and makes it seamless for them to obtain credit facilities.
  • Curbs Litigation Costs: Ambiguity in land title, unpaid property taxes, and spouse’s claims on property discovered after purchase might draw home, huge financial costs. In order to overcome such troubles, title insurance is a must-have.
  • Handles Disputed Ownership Claims: In the absence of an organized system, there are several frauds pertaining to past property title charges or unclear land titles. The insurance acts as a shield against such property mishaps.
  • Value for Time and Cost: Property involves a humongous cost, and once involved in a related feud, the entire process turns out to be a hassle in itself. Real Estate legal firms provide legal assistance. These policies assist in tackling disputed ownership issues in a very cost-effective manner. The most important advantage is that title insurance is a one-time investment.
  • Adds a Safety Quotient to Residential Property: No home buyer would be willing to invest in a property that does not seem secure or trustworthy. Title insurance also enhances the credibility of a property and adds to the confidence of house financing companies. The insurance increases the value of the investment profile of the property.

Advantages of hiring an Attorney when buying a home:

The very concept of title insurance is known to meet the mandates of RERA, but it can be purchased even for properties that are not registered with RERA, and have been built eons ago. Anyone can obtain title insurance. It is always recommended that home buyers be safe than sorry, and hence opt for title insurance to ensure a safe and secure property investment.

A buyer can benefit from hiring an attorney when purchasing real property:

  • Protect your contractual rights: An attorney can review the contract to make sure you understand your contractual rights and ensure you take the steps necessary to protect those rights. 
  • Give advice on taking title: An attorney can help you understand the difference between tenants in common, joint tenants, and joint tenants with right of survivorship, the ways you can take title, the pros and cons of each option, and help you avoid costly pitfalls.
  • Guard your title to the property: It is common practice to purchase title insurance when buying real property, and title companies can produce the insurance policies. What they often won’t do is review your title policy to minimize the amount of exceptions to your coverage.
  • Provide peace of mind: Someone who understands the closing process and all of the documents read through the morass of language and words scattered throughout all those documents.

Need Help in?

  • Real Estate finance, 
  • Fast, easy, stress-free Real Estate Closings,
  • Real Estate Transactions (Residential and Commercial),
  • Title Insurance.

For ‘Free initial Consultation’, feel free to contact, NY Premier Attorneys with successful expertise spanning decades, at Pheterson, Spatorico LLP, or   visit us at
or call
Mr. Derrick A. Spatorico, NY Premier, Real Estate Attorney                                                                         
{‘Lawyer of Distinction’, ‘Super Lawyer’, ‘McKnight Awardee’, ‘Personal Injury Verdicts Awardee’ ‘Member of the Multi-Million Dollar Advocates Forum)’!


  • October 13, 2018 Posted
    Alisha Williams

    Thank you so much for your help! My case won!

    • October 13, 2018 Posted
      Melissa Hunter

      I like the attorney whom I worked with, and will definitely get in touch soon again.

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