What is a title insurance policy?

A title insurance policy is a type of policy that protects the buyer and lender from any title defects that may not be discovered when purchasing or financing a piece of property. Title insurance is generally purchased as part of the closing process of a real estate transaction when a title search of the property is conducted. Title insurance is intended to protect the buyer and lender from any title defects or liens against the property that could not have been discovered during the course of the title search. In Massachusetts, purchasing a title insurance policy is required for a real estate transaction to be completed. Title insurance can be provided by either a title company or an attorney. Title insurance ensures that the person buying the property is legally purchasing an unencumbered piece of property, and the lender is getting a secure loan. It is important for buyers and lenders to understand the risks of title transfer and to purchase an appropriate policy in order to protect themselves and their investment. Title insurance provides peace of mind in knowing that a property’s title is secure.

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What is a title insurance policy?

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