What is title insurance?

Title insurance is a form of insurance policy that protects a buyer against financial losses incurred as a result of purchasing real estate. In the state of Washington, title insurance covers both lenders and buyers against losses resulting from legal defects in the title of the property. These defects could include undisclosed liens, mistakes in public records, or prior claims by someone other than the seller that have not been disclosed. The insurance is paid for by the buyer or lender at the time the property is purchased and generally remains in effect for as long as the buyer or lender owns the property. Title insurance is an important element of the real estate transaction and is intended to give the buyer or lender peace of mind and financial protection in the event of a legal dispute.

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