What is a title insurance policy?

A title insurance policy is a type of insurance that protects a property owner from financial losses due to defects in a property’s title. Title insurance is important in Arkansas because it protects both the buyer and seller from potential problems that may arise during a real estate transaction. When a title company performs a title search, they look for any potential title defects, such as unpaid liens, judgments, or encumbrances. These issues can be costly to resolve and may even result in the loss of the property. Title insurance can cover these losses, up to the policy limit. Title insurance is also important in Arkansas because it guarantees that the seller has the right to sell the property. If a prior owner’s deed was inaccurate or fraudulent, title insurance can protect the buyer from losses resulting from the defect. Additionally, title insurance may cover the costs of defending the insured title in court. Overall, title insurance is important in Arkansas real estate transactions. It protects both the buyer and seller from potential financial losses due to title defects. Title insurance also guarantees that the seller has a valid deed, and can cover the costs of defending the title in court.

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What is a title insurance policy?

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